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Tds on royalty paid to government

5206 views 4 replies
I have one doubt

Whether TDS Is applicable on Royalty paid to governament for extraction of sand/murum.

I think since we are paying amount to government TDS Will be not required.

And also Rate of TDS as per sec 194J is 10% on royalty but in Case royalty paod in case of consideration against sale then TDS rate shall be 2 %.

I am confused on this which rate is applicable??
Replies (4)
No tds liability when payment was made to government
But the perso with whom we are dealing is demanding for tds deduction

what should I do..
Sorry sir, my bad, without referring the relevant section, I replied earlier... actually no exceptions have been carved out in section 194J in respect of royalty payments made to GOVERNMENT
Yes sir there is no exception in 194 J for payment to the government but as per sec 196 of income tax there is no need to deduct in case of payment made to government...


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