Tds on payments to iit

TDS 5179 views 2 replies

Dear All!

Please clarify me with regard to the following query..

Is TDS deductible on payments made to IIT for some engineering service received?

Replies (2)

TDS IS APPLICABLE IF THE PAYMENT IS MADE TOWARDS  FEES FOR PROFESSIONAL, TECHNICAL,  royalty, WHEHTER THE PAYMENT EXCEED RS. 30000/-

  “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified.

“fees for technical services” means any consideration (including any lump sum consi-deration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head “Salaries”.

 

so if your payment falls in any of these catagiores it will attract TDS..............

It is basically deductible. But there are some kind of income which are exempt for IIT's, the payment in nature of which is not subject to TDS. Please enquire for the certificate under section 197 for TDS at a lower rate or exemption certificate from such IIT's. 


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