TaxTMI 
TaxTMI 
TaxTMI 
We have received NIL tax exemption certificate from Vendor X. Vendor X wants the money due to him to be paid to Mr.Y on his account. Will Nil rate of TDS will be attracted for making payment to Mr.Y also.
Tds - Applicability of Nill rate
Rahul Bagaria
No TDS Required When Paying Mr. Y on Behalf of Vendor X Under Nil Tax Exemption Certificate A query was raised regarding the applicability of a nil rate of TDS when a payment due to Vendor X is made to Mr. Y on Vendor X's behalf. Three responses confirmed that no tax deduction at source (TDS) is required in this situation. The consensus was that since the payment to Mr. Y is essentially a discharge of the liability towards Vendor X, and the nil tax exemption certificate applies, TDS is not applicable. (AI Summary)