TDS

This query is : Resolved

suman (Querist)
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29 July 2010 WHEN A GOVG ORGNAISATION IS PAYING TO GOVG ORGNAISATION THAN WETHER PROVISION OF 194(C) IS APPLICABLE OR NOT? PLS REPLY SOON.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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29 July 2010 Sec 194C(1) states that "Any person responsible for paying any sum to any resident....."

So when a Govt. Organisation is apying to another Govt. organisation, provisions of Sec 194C will be applicable.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 July 2010 I have different view in this. If the govt paying to other than the Govt - TDS is applicable.if the Govt. paying to the Govt, tds will not applicable reasons

1. Govt payment TDS is not applicable

2. A person cannot deduct TDS income for himself. Since both are Govt. so no income and expenses concept

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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29 July 2010 But the payee and the payer here are not Govts., but only Govt. organisations which can be PSU's, Nationalised Banks etc.

There is always a disntinction between a Govt. & a Govt. organisation.