A company has paid Rs 12 Lac as consultancy fees to an Engineering college. The Company engaged the college to undertake certain activities for its business and after doing the work, the college has raised an invoice for Rs 12 Lac towards consultancy fees for doing the same. Now my query is:
Whether TDS is required to be deducted from the said consultancy fees?
If yes, then please clarify , u/s 10 of the Income Tax Act, the income of college/university/school is exempt and if their income is exempt, how can we deduct TDS?
If No, then please clarify what procedure do we need to follow to ascertain that tax is not required to be deducted ie collection of exemption certificate, notification etc.?
Is it necessary to know whether college is a govt. college or private college? Would it make any difference regarding deduction of Tax?
Please clarify.
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