Tds exemption for trust u/sec 12aa of it act

Hii Sir,

12AA registered trusts are not tax exempted. They have some exemptions u/s 13 of the IT Act ie. mainly for receiving donations, claiming of capital expenditures, application of income and accumulation. There is no special exemption from other normal provisions of the Act, they have exemptions specified u/s 13 only and since you are liable to deduct TDS for such contract payment normally, at 2%. Regards

Hi, 

Thank you very much for the reply the Organisation is quoting Sec 13 rule as below: 

(ii) The income is for the benefit of any particular religious community 
or caste. However, income for benefit of persons belonging to 
Scheduled castes, Scheduled tribes, women and children will not 
be denied exemption u/s 11 & 12. 

Since the Contract given to them is benefitting only SC/ST they are claiming that it is exempt from Income Tax as per Sec 13. 

Please clarify whether are we competent to waive off the TDS deduction. 

You are liable to dedcut TDS @ 2% irrespective of the fact that payment is being made to a trust which is registered u/s 12 AA

Thank you very much for your replies, as they are an engineering college mostly conduct business in money rotation (black - white)  and donation types hence they are not worried about the income tax at all.

In this case only we are worried as we are subject to strict audits and non deduction of tds would result in observation by auditors, if proper reason & justification is not there for non deduction of TDS. 

I will take these points and ensure that we act as per law. 

HELLO ALL..

WHAT IF IT IS THE OPPOSITE.. I MEAN IF A TRUST PAYS FOR SOME CONTRACT OR PROFESSIONAL FEES, DOES THE TRUST HAVE TO DO TDS ON IT ?

REGARDS

HELLO ALL..

WHAT IF IT IS THE OPPOSITE.. I MEAN IF A TRUST PAYS FOR SOME CONTRACT OR PROFESSIONAL FEES, DOES THE TRUST HAVE TO DO TDS ON IT ?

REGARDS

one of my clent not deduct TDS while payment as professional fee Rs.450000/- is there any disallowence and any thing is reflected

When tds not deducted, the expenditure is disallowed in arriving at taxable income.

When tds not deducted, the expenditure is disallowed in arriving at taxable income.

yes. under section 192 if monthly salary exceeds prescribed limit.

Sir, an NGO heaving agreement between NGOs for free Training service, and no charges to beneficiaries, other NGO supporting for expenditure.

1. . Do transaction between 2 NGO having 12 A, for the cause is liable to deduct TDS even though NGO? if so why?