Dear Friends,
We have entered into contract agreement with an Organisation for Business Purposes. That Organisation comes under Trust. Now while making payment to the Organisation my accounts department is of the view that TDS should be deducted @ 2% U/s 194C , whereas the Organisation which comes under a Trust and uses the Pan Card of the trust is of the view that they are exempt from Income Tax being charitable trust and have submitted Order Under Sec 12AA of the Income Tax Act 1961 given by Income Tax (Exemptions Directorate) and the IT Dept has registered them under Sec 12AA of IT Act. This Order is dated year 2010 and scanned copy is attached for your reference. In this regard, please confirm whether while making the Payment to Organisation TDS needs to be deducted or not.
CAclubindia
