Hi Guys,
I have queries regarding TDS. Kindly give your expert opinion.
FIRST ONE - One of our clients is Govt Irrigation Dept. They have made some Advertising payments to various newspapers (like Indian Express, Sakal, Lokmat etc.)
Out of such payments,around Rs. 1,50,000/-, is paid to Indian Express without deducting TDS. Thispayment falls under `194C – Pymts to Contractors' . When I asked concerned person, he told that they have not made any contract with them. They simply intimate Maharashtra Govt
Information Dept regarding need for an advertisement and this Govt Dept directly makes necessary arrangements with any newspaper.
Concerned Irrigation Dept is required to make payment directly. Because of this, theyhave not deducted TDS. Please guide me on validity of this statement, since Itold them that it would be better to deduct TDS on this transaction.
SECOND ONE – Same Irrigation Dept appointed one consultancy agency to give their expert opinionon some dam and irrigation related activities. On verification of their Invoice, it was very clear that it was pymt for professional services. However,this consultancy firm demanded all pymt
(Rs. 15,44,000/-) in advance i.e.before starting their work and before giving any opinion. This Irrigation Deptpaid entire pymt in advance without deducting TDS. In my opinion, TDS had to bededucted. Plz give your opinion.
Thanking You.
CAclubindia
