TDS on CSR grant received

[Guest]

1. NGO gets grants from Corporate under CSR scheme. The grant is used for charitable purpose.

Is TDS applicable on this grant?

2. XYZ Pvt Ltd, a Principle Recipient, gets grants from a foreign donor. XYZ further release funds to Sub-Grantees in different states of India to to charitable activities. Is TDS applicable in this case?

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

TDS applicability on CSR grants may arise when companies donate or when principal recipients redistribute funds to sub grantees. Applicability of TDS on corporate social responsibility grants and whether a principal recipient's onward releases to sub grantees create withholding obligations are posed as the operative questions, focusing on tax withholding at receipt or distribution without offering a definitive ruling.