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Tds on royalty paid to government

4342 views 4 replies

shivani ebitwar

24 Points Joined February 2019

I have one doubt

Whether TDS Is applicable on Royalty paid to governament for extraction of sand/murum.

I think since we are paying amount to government TDS Will be not required.

And also Rate of TDS as per sec 194J is 10% on royalty but in Case royalty paod in case of consideration against sale then TDS rate shall be 2 %.

I am confused on this which rate is applicable??

Replies (4)

rama krishnan

12244 Points Joined May 2017

No tds liability when payment was made to government

shivani ebitwar

24 Points Joined February 2019

But the perso with whom we are dealing is demanding for tds deduction

what should I do..

rama krishnan

12244 Points Joined May 2017

Sorry sir, my bad, without referring the relevant section, I replied earlier... actually no exceptions have been carved out in section 194J in respect of royalty payments made to GOVERNMENT

shivani ebitwar

24 Points Joined February 2019

Yes sir there is no exception in 194 J for payment to the government but as per sec 196 of income tax there is no need to deduct in case of payment made to government...