Tds reg

can we deduct tds 94q on trust ? they are lable supplier
Replies (3)
Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194Q applies to trusts when they are the supplier. Generally, TDS applies unless the seller provides a 'No deduction of Tax' certificate. However, if the trust's income is exempt from income tax, either under the Income Tax Act or other parliamentary acts, then Section 194Q provisions will not be applicable.

Yes, unless any certificate like 'No deduction of Tax' provided by seller through ITD.

As per CBDT circular, the provisions of section 194Q of the Act shall not apply on purchase of goods from a person, being a seller, who as a person is exempt from income tax under the Act (like person exempt under section 10) or under any other Act passed by the Parliament (Like RBI Act, ADB Act etc.).

So if the income of trust is exempt, then 194Q would not apply.

Danyavad

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