TDS

This query is : Resolved 

18 June 2009 my query is regarding applicability of TDS where payee is Govt Undertaking and payer is Pvt sector undertaking
Whether payer is liable to deduct tax at source in such case??
Pls also quote the relevant Section / Rule of Income Tax Act / Rules

18 June 2009 any payment made to govt.dept.are exempt for tds.because local bodies & govt dept.are not liable for income tax



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