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Tds exemption

Baskar (CMA) (93 Points)

11 October 2019

Hi,

A company make payment to national dairy research institute amounting to Rs.3000.

Is tds apply for that or not?

Can anyone Pls revert quickly...

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4 Replies

CA Dhruva Kalamanji (Chartered Accountant ) (1996 Points)
Replied 11 October 2019

If amount is just rs 3000 then no tds

if it is more than threshold limit then tds is applicable

sabyasachi mukherjee (26047 Points)
Replied 11 October 2019

If it is paid for professional services
Sec 194 J is invoked.
otherwise no TDS.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 11 October 2019

1. It depends on the nature of work done and expenses. Example contract, commission, profession etc.
2. However, if it is an institute under government control then TDS will not be applicable. And to add more point, payment is Rs. 3,000, which is within the threshold limit under any TDS section.
3. Hence, no need for deduction of TDS.
Please correct me if the above solution has an alternative view.