TDS Query

HI DEAR,

AS PER SECTION 196, ANY PAYMENTS MADE TO  GOVERNMENT, RBI, STATUTORY CORPORATIONS OR MUTUAL FUND (EXEMPT US/ 10(23D)) SHOULD BE MADE WITHOUT DEDUCTION OF TDS. 

IMPORTANT QUESTION ARISES, WHO IS THE SECOND CONTRACT PARTY WHETHER GOVT. ITSELF OR CONTRACTOR. IF THE CONTRACT IS IN BETWEEN SCHOOL AND CONTACTOR, AND IF THE PAYMENT IS MADE TO CONTRACTOR AND LATER ON CONTRACTOR PAID THE SAME TO GOVERNMENT, THEN PROV OF SEC. 196 WOULD NOT APPLIED AND U HAVE TO DEDUCT THE TDS

 IF U ARE MAKING PAYMENT DIRECTLY TO GOVERNMENT, THEN PROV OF SEC 196 WOULD APPLIED AND NO NEED TO DEDUCT TDS.

IN MOST OF THE CASES, GOVT HAS THE PANEL OF CONTRACTORS. AND ANY GOVERNMENT DEPT, SCHOOLS,ETC IF WANTS TO GIVE THE ANY CONTRACT, IT HAS TO GIVE TO ANY OF THOSE CONTRACTOR ON PANEL. SERVICE USER WOULD DIRECTLY MAKE THE PAYMENT TO CONTRACTOR AS PER THE RATES AGREED UPON. SO IN THAT CASE, U HAVE TO DEDUCT TDS.

REGARDS,

MANOJ

AGREED WITH MR MANOJ

AND IF CONTRACTOR WANTS THAT SCHOOL DOES NOT DEDUCT TDS 

THAN HE HAS TO BE CERTIFIED FROM CENTRAL GOVT FIRST AND GIVE ONE COPY OF CERTIFICATE TO SCHOOL

AFTERWORDS SCHOOL CAN MAKE THE PAYMENT WITHOUT DEDUCTING TDS

AS SAME CASE WITH THE FICCI

Is TDS applicable on hotel satay charges including food and beverage charges?

if the stay is in personal capacity  thn no tds is to be deducted on stay as well as fooding ,if it is business expenditure thn from the point ofbusiness expenditure on stay tds should be deduted under 194I AFTER 180000/

Originally posted by : Alok Kumar
	Is TDS applicable on hotel satay charges including food and beverage charges?