I am making the payment to Airport Athority of India as licence fee for use of advertise space at their premises at Airport. I have not deducted the TDS on the payment made to them thinking that it is a government organisation and hence tds not applicable. Now the assessing officer has send me a notice for non deduction of TDS on the said payment. Is there any notification that AAI is not a government organisation and how can i justify the non deduction of TDS.
12 February 2009
TDS should have been deducted at the rate of 1% as increased by the education and higher education cess. As such, there is no notification.