We are in the process of starting one CSR project for upliftment of tribal people , wherein we are making arrangement for clean drinking water in the villages.
said project will be carried out by one of the NGO to whome we will be giving funds and entire execution will be done by NGO , NGO is section 8 company and posses 80G certificate , should we deduct the TDS while remitting funds to NGO for project implementation .
Please reply, its urgent.
Yes, You should Deduct TDS u/s 194C while remitting payment to NGO whether registered or not.
First tell me how TDS Applied on CSR Fund.
If the payment is for providing any CSR services to the company itself (or) to beneficiaries named by the company, then TDS will be attracted.
If the discretion of choosing the CSR beneficiary or participant is with the company and not the CSR implementation partner or NGO, TDS should be deducted under 194J.
For common donations or contributions made under CSR, TDS will not be attracted.
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