We are a company from mumbai and making payment to a person in Sikkim for the service provided by him in Sikkim.
As income earned in Sikkim is made exempt u/s 10(26AAA), do we need to deduct TDS as there are no changes made in TDS provisions.
Kindly reply at the earliest.
Guest
Guest
(Expert)
14 March 2012
If the income is exempt then question of tax deduction does not arise. Tax is to be deducted only on income which forms part of taxable income.
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