Payments to govt underatkings

TDS 322 views 1 replies

srikanth sasidhar

Chartered Accountant Cost Accountant

86 Points Joined April 2009

Dear Professional Colleagues,

Gud Mrng all

Please help out me to reslove the following query.We are making payment to railtel ltd(govt undertaking) for leased line services.whether TDS will have to be deducted on the payment made to railtel,if applicable under which section & at what rate TDS to be deducted...Do the needful at the earliest...

Srikanth.

Replies (1)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3487 Points Joined June 2011

The rate will be 10% under section 194J or 194I. It will not be 2% under 194C. The fact that it is government undertaking will not entitle it for tds exemption.

Regards,