Question ID :
40649
TDS on Payment to Private Drug Rehab
Hi,
My question is as follows:
Is TDS required to be deducted on Payment made by a company to a Drug Rehab Centre? Drug Rehab Centre is a society registered under Manipur Society Registration Act, 1989. It is not formed by Government. The payment is not for employees and also not donation. It is for the welfare. Please reply. Warm regards.
Posted by
Kamlesh Mehra
on
May 12, 2020
Filed Under
TDS/TCS
Seems no need to deduct tax, since it is a voluntary contribution for the welfare of the society.
Posted by
B.CHACKRAPANI WARRIER on
May 12, 2020
Answer ID :
80522
it appears from the given fact that there is no to deduct TDS on the payment made to NGO.
However, it is not clear nature of payment.
Posted by
CA. SATISH CHAND GARG on
May 12, 2020
Answer ID :
80523
TDS might be applicable @ 2% u/s 194 C, if this payment is made in accordance with a contract to carry out any work of welfare. The definition of work is inclusive. Important is there is a contract, there are two parties and payment is made in consequence of that contract.
Note if the payment is below 30,000 INR and below 1 lakh in the entire year, TDS will not be applicable.
Also if it is a voluntary donation without a contract, then also TDS is not applicable.
Posted by
CA Yogesh Kumar on
May 12, 2020