Tds applicability on payment of share revenue

[IDPLUIL GROUP]

whether it is liable to deduct TDS on payment of share of revenue to National Highway Authority of India as per the agreement entered. The National Highways Authority of India was constituted by an act of Parliament, the National Highways Authority of India Act,1988. It is responsible for the development, maintenance and management of National Highways entrusted to it and for matters connected or incidental thereto. The Authority was operationalised in Feb, 1995

AI Summary

TDS Not Applicable on Payments to NHAI in Revenue-Sharing Joint Ventures: Clarification on Tax Obligations A query was raised regarding the applicability of Tax Deducted at Source (TDS) on payments made to the National Highway Authority of India (NHAI) under a revenue-sharing agreement. The NHAI, established by the National Highways Authority of India Act, 1988, manages and develops national highways. A response indicated that if the payment is part of a revenue-sharing arrangement within a joint venture, TDS may not be applicable.