Tds comes or not----need expert view... its very urgent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 Dear Expert,

Whether TDS comes or not on Supervision charges to BESCOM( Arm of Electricity board of Karnataka Gov)...

now we have deecuted TDS @10%...but BESCOM people were telling

1) TDS is not applicable for Gov. companies..is this correct.. i think only of 194I its not applicable

2) whether payment of supervision charges to BESCOM would attract TDS?

Kindly clarify the same....

Regards

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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17 July 2012 U/s 196 of IT Act, No TDS is required from any sum payable to Govt. or RBI or a Corporation established ubder a Central act.
Check with the payee for its status and decide.