TDS

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Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2011 payment made to punjab police Rs. 1,00,000/- . for a quarter - is it liable to TDS under any section .

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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11 April 2011 Pl clarify what kind of payment it is.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2011 It is a payment made for security of a person . company pay Rs. 100000 to Punjab police to safeguard its MD.

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tejas shah

tejas shah (Expert)
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11 April 2011 it is a contractual payment which is convered u/s. 194C. Therefore it is liable for tds.

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2011 But do Police department have there PAN No.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 April 2011 In my view, TDS will not attract in this transaction and not covered in any sections also

madhur gupta

madhur gupta (Expert)
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12 April 2011 No.i dont think so TDS will b applicable in this case as Punjab Police dept is govt dept.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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13 April 2011 The nature of the transaction seems to be a contract u/s 194 C, however, have to check whether the police department is an exempted case in the TDS rules. IF so, no need to deduct else required to be deducted

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CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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13 April 2011 Please note that no TDS is to be deducted from Government as per following section:

Section 196. INTEREST OR DIVIDEND OR OTHER SUMS PAYABLE TO GOVERNMENT, RESERVE BANK OR CERTAIN CORPORATIONS.

Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to-

(i) The Government, or

(ii) The Reserve Bank of India, or

(iii) A corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or

(iv) A Mutual Fund specified under clause (23D) of section 10, where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.

AS Police Department is part of the Government no TDS is to be deducted.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011 Sir but as per Section 194 C ,TDS is to be deducted on payment made to Central gov. , state gov, local authority etc.and our case fall in sec. 194 C, i think that TDS should be deducted on the same ..
Plz correct me if i am wrong.

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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14 April 2011 Section 194C comes under chapter XVII of Income Tax Act which comes under purview of Section 196 quoted above by me. Therefore, Any payments to Government under Section 194C is not liable for TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2011 Satisfied with the rpy of CA K.K. Daruka Ji .. Thanks to all

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