whether schools have to comply with Tds provisions.
e.g. hiring contractor for carrying out renovation or painting of school walls
tds is based on the invoice volume and category of school registration
Anoop Bansal (student ) (199 Points)
31 July 2019
CA PREM KUMAR
(Chunduru & Co)
(296 Points)
Replied 31 July 2019
tds is based on the invoice volume and category of school registration
Anoop Bansal
(student )
(199 Points)
Replied 31 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 31 July 2019
1. TDS will be applicable for schools too. The purpose of TDS is to track the income of the person who rendered the service and irrespective of the person who is paying it.
2. However, individuals who are not liable for tax audit for the reason of unnecessary burden from compliance angle they have been exempted from TDS deduction.
3. In your case schools need to deduct TDS u/s 194C if the payment exceeds Rs 1 lakh per annum to the contractor.
Please correct me if the above solution has an alternative view.
Saket Mishra
(367 Points)
Replied 01 August 2019
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