Tds on payment to municipal corporation

This query is : Resolved 

29 October 2013 I am working in constructin co. we hane paid interest to Kalyan Dombivali Municipal Corporation on Mobilisaton Advance. But KDMC says not to deduct TDS as they are Government. In this case i want to know whether as per Income Tax Act Municipal Corporation is Government or not? if yes please provide such circular reference.

29 October 2013 They are right...
As per provisions no Tax to be deducted on payments made to government...



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