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Q. > Please Help: Whether any remedy available to Residential Welfare Association from Sec 194C
A Residential Welfare Association (RWA) is registered under Societies Registration Act, 1860. RWA paying Rs 13,500/- per month to a Small Security Agency against services of 3 security guards (Security Agency is also not registered with Service Tax). RWA have no any business income. The income of RWA is exempt under “Principle of Mutuality”. Now the query is whether it is mandatory for RWA to deduct the TDS on payment/ Credit of Security Agency u/s 194C. Whether any remedy available to RWA.
CA Sansaar

Comments
CA Pardeep Chanana
09-May-2013 , 10:16:11 amDear Mr. Naveen, Section 194C has nothing to do with the income/non-income of residential welfare association. It is purely a procedural section and you need to deduct TDS of the security agency under section 194C of Income Tax Act. However if security agency can provide you a certificate under section 197(1) for non deduction of TDS,then you would not be liable to decution of TDS.
CA. Naveen Sati
09-May-2013 , 03:20:35 pmThanks
CA. Naveen Sati
09-May-2013 , 04:06:04 pmThanks