Please Help: TDS
Posted Date : 15-Sep-2011 , 05:32:08 pm | Posted By ashish agrawal
can public company deducted tds of state goverment department as a contractor
Category : Income Tax | Answers : 1 | Comments : 1 | Hits : 347
Answers
Answer By: Ashish Karundia
Dear Ashish,
In the instant case public company is not required to deduct TDS when they are making payment to the state government because as per Section 196 (i) of the Income Tax Act, 1961 no deduction of tax shall be made by any person from any sums payable to the Government. Further, the word 'Government' is mot defined in the Income Tax Act, 1961. Therefore an inference can be drawn from other Acts. In this regard it may be noted that Section 17 of the Indian Penal Code (45 of 1860) defines that "Government " denotes the Central Government or the Government of a State.
Hope this clarifies the position.
In the instant case public company is not required to deduct TDS when they are making payment to the state government because as per Section 196 (i) of the Income Tax Act, 1961 no deduction of tax shall be made by any person from any sums payable to the Government. Further, the word 'Government' is mot defined in the Income Tax Act, 1961. Therefore an inference can be drawn from other Acts. In this regard it may be noted that Section 17 of the Indian Penal Code (45 of 1860) defines that "Government " denotes the Central Government or the Government of a State.
Hope this clarifies the position.
Comments
CA SUBHASH KR.
15-Sep-2011 , 10:51:46 pmyou right said