Trust doesn't require to deduct TDS u/s 194A

No TDS by trust THE Delhi Tribunal has held that employees’ provident fund trust is not liable to deduct tax at source under Section 194A from credits/payments made by the trust to the account of its members. The assessee, an employee provident fund trust, did not deduct any tax at source from amounts credited to its members. The assessing officer was of the view that the assessee should have deducted tax under Section 194A and treated it as an assessee in default for nondeduction of tax. The Tribunal observed that, as trustees of the trust represent beneficiaries, the status of trustees (effectively that of the trust) would be the same as that of the beneficiaries. In the present case, the beneficiaries were individuals, and therefore, the status of the trust would also be that of ‘individual’. Since, as per Section 194A, individuals were not required to deduct any tax at source, the trust was also not required to deduct any tax at source. Accordingly, the assessee was not an assessee in default.