Payment made to corporation or Municipal board for water charges liable to TDS U/S 194Q or not?
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Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194Q applies to payments made for water charges to corporations or municipal boards. The consensus is that TDS is not deductible in these cases. This is based on Circular No. 18/2017, which states that TDS provisions do not apply to payments made to 'Local Authorities'.
Please ref. CIRCULAR No. 18/2017 dated 29.05.2017 wherein it has been stated that provision of TDS is not applicable for making payment to "Local Authority".