whether schools have to comply with Tds provisions.
e.g. hiring contractor for carrying out renovation or painting of school walls
tds is based on the invoice volume and category of school registration
6 Replies
Anoop Bansal
(student )
(199 Points)
Replied 31 July 2019
School is upto higher secondary and affiliated with Punjab School Education Board
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 31 July 2019
1. TDS will be applicable for schools too. The purpose of TDS is to track the income of the person who rendered the service and irrespective of the person who is paying it.
2. However, individuals who are not liable for tax audit for the reason of unnecessary burden from compliance angle they have been exempted from TDS deduction.
3. In your case schools need to deduct TDS u/s 194C if the payment exceeds Rs 1 lakh per annum to the contractor.
Please correct me if the above solution has an alternative view.
Saket Mishra
(367 Points)
Replied 01 August 2019
@ suresh agree with your reply but i would like to add one more thing that by adding aec 194M individual shall also be required to deduct TDS ...
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