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TDS ON FUNDS GIVEN BY ONE NGO TO ANOTHER NGO FOR SOCIAL WORK

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neeraj sharma

3 Points Posted on 09 March 2023

We are a registered society holding 12A and 80G , We are receiving funds from GWP for water sustainability projects , and we are further sending fund to member organisation for project completion, and taking fund utilization certificates from them with UDIN .

My question is that should we have to deduct TDS on fund further send to member organisation ?

Replies (2)

Quick Summary

This discussion explores whether a registered NGO (with 12A and 80G status) needs to deduct Tax Deducted at Source (TDS) when transferring funds to its member organisations for social work projects. The core question revolves around whether these transfers are considered contractual payments under Section 194C, requiring a 2% TDS deduction, especially when fund utilisation certificates are obtained.

Subhojeet Karmakar

34 Points Posted on 09 March 2023

I think work is in contract basis tds is applicable 2 % on sec194c

neeraj sharma

3 Points Posted on 09 March 2023

No , we are providing funds to member organization that is either trust/company/society for specific activities to be done as per our agreement and we are taking fund utilisation certificate from them . We are a 12A& 80G registered society.