Sir,
our organization is autonomous body set up under special Act.
One independent association is in existing for business support activities and organizing training program for similar entities like us.
Our organization is doing payments as following to that association.
1.proportionate lump sum payment as a contribution to that association.
2.Reimbursement for Vehicle hire and accommodation arranged for our officials from third party.
The association is not keeping any profit element in its invoices but charging service tax in invoice.
Please guide me on TDS deduction from payments made as above to that association.
Thanks
TDS Applicability on Payments for Business Support and Training: Pure Reimbursements Excluded, Apply for Lower/Nil Deduction An autonomous organization inquired about the applicability of Tax Deducted at Source (TDS) on payments made to an independent association for business support and training activities. The payments include a lump sum contribution and reimbursements for vehicle hire and accommodation. The association charges service tax but not profit. A respondent clarified that TDS applicability depends on the entity's status, with no TDS on pure reimbursements. The entity can apply for a lower or nil TDS deduction for training-related payments through the Income Tax department. (AI Summary)
TaxTMI 
TaxTMI 
