LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds on payment made to stpi

CA Swati Chechani (NA) (77 Points)

18 March 2014

Hi,

Does payment made to STPI (software technology park of india) for registration liable for TDS deduction ?????

Thanks & Regards,

CA Swati Chechani

Reply
Follow
Share

24 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 18 March 2014

Dear Swati

It is a kind of registration fees and hence not covered under tds sections.

Regards

CA Swati Chechani (NA) (77 Points)
Replied 18 March 2014

Bt Sir de send me invoice which is inclusive of service tax amt nd service tax no is also recored dr so i'm confused on dat point .........

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 18 March 2014

Dear Swati

I know such payments are always confusing but registration fees are not covered under any TDS section. ( the first idea which we get is to classify it under sec 194j but after doing a resonable study on your case i suggest you not to deduct tds on it as niether cover under section 194j nor 194c)

Regards

CA Swati Chechani (NA) (77 Points)
Replied 18 March 2014

Actually sry Sir,its nt registration charges its type of annual fee nd dat is charged on the basis of turnover annually.......the amt charged is 50000+5000(service tax) nd name of services is STP services wic is recorded in invoice

So wht sud i do???

RAHUL GOYAL (tax consultant) (46 Points)
Replied 18 March 2014

Dear Swati.....NO TDS is required to deduct when there is payment made to Government department....

And STPI comes under ministry of Information Technology, governmental of India....

so payment made to STPI for registration are not liable for TDS.....

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 18 March 2014

if it is paid on your turnover than it can be classified as a royality. (not sure as i dont konw your case)

and if royality then deduct tds under section 194J @ 10%.

(For a safer side i suggest you to deduct tax )

Regards

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 18 March 2014

Yes correctly said if it government organisation do not deduct tax on it .....

RAHUL GOYAL (tax consultant) (46 Points)
Replied 18 March 2014

It doesn't matter whether you r paying for registration charges or annual fee....ultimately you are paying to govt deptt.....so NO TDS......

CA Swati Chechani (NA) (77 Points)
Replied 18 March 2014

Thanks Sir, bt i want to conform that is STPI a Govt authority????

CA SUKSHAM ARORA (CA) (569 Points)
Replied 18 March 2014

yes, it is

Software Technology Parks of India (STPI) is a government agency in India, established in 1991 under the Ministry of Communications and Information Technology, that manages the Software Technology Park scheme. It is an export oriented scheme for the development and export of computer software, including export of professional services.

more on https://en.wikipedia.org/wiki/Software_Technology_Parks_of_India