N KRISHNA CHAITANYA (CA Student) (101 Points)
17 August 2010If a contract was made between two goverments. Say between a Govt School and a Contractor Specially appointed by Govt . Any paymnet made to him goes to Govt.
Then contractee ( Govt School ) is required to deduct tax as source from the Govt contractor ?
But as per sec 196 there is no need to deduct TDS if any payments made to Govt or to RBI
Please clarify this as early as possible
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 17 August 2010
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
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
Dheeraj
(Learner)
(1100 Points)
Replied 17 August 2010
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
Alok Kumar
(Practicing C.A.)
(56 Points)
Replied 17 August 2010
Is TDS applicable on hotel satay charges including food and beverage charges?
deepak
(proprietor)
(25 Points)
Replied 09 November 2010
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 | ||
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Is TDS applicable on hotel satay charges including food and beverage charges? |
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