Ashish (Student) (269 Points)
30 May 2014Hello Experts,
There is a trust with an objective of maintaing santury and wildlife of the area. It is for the Biodiversity and Providing Livelihood to the different unemployed people who are seasonal employed. It gets grant from world bank.
My question is that whether it should deduct TDS ?
Is there any liability of deducting TDS ?
Thanks in Advance.
Nikhil Kaushik
(Fellow CA)
(85743 Points)
Replied 30 May 2014
yes...it is required to deduct taxes on payments made by it if covered under the tds provisions.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 30 May 2014
Whether a Trust has to deduct TDS:
It has been held by Supreme Court in case of CWT vs Trustee of H.E.H Nizam’s Family (Remainder Wealth ) Trust [1977] 108 ITR 555 , that in case , where shares are determinate , the status of the trust with reference to each beneficiary will be same as that of the beneficiary . And if the trust is assessed as individual, as it has no business income, it does not have to deduct tax at source.
However, in your case, the trust is not assessed as an individual so, you have to deduct tax at source on payments made by you eg: 194C (Contractual payments),194 A, interest, 194 H Commission or brokerage, 194I, Rent, 194J Fees for professional or technical fees.
Whether TDS has to be deducted ON trust
TDS has to be deducted on payments (like the ones mentioned above) made TO trust unless a certificate is to obtained under Section 197(1) for no/ less deduction of tax at source.
Nikhil Kaushik
(Fellow CA)
(85743 Points)
Replied 31 May 2014
thanks for the detailed explanation Madhavi...
Ashish
(Student)
(269 Points)
Replied 01 June 2014
Thnxs a Lot Experts.... The info was really useful... :)
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