TDS on payment made to state government department

[Common Issues]

Can public limited company or any other person is liable to deducted TDS from the payment made to  State Government Departments as a contractor.

AI Summary

No TDS Deduction Required for Payments to State Government Departments as Contractors Under Section 196 of the Income Tax Act. A query was raised regarding whether a public limited company or any other person is required to deduct Tax Deducted at Source (TDS) from payments made to state government departments acting as contractors. The response clarified that under Section 196 of the Income Tax Act 1961, there is no obligation to deduct TDS in such cases.