applicability of TDS

[Guest]

Dear Sir,

We have engaged the services of National Remote Sensing Centre,ISRO,Dept of Space ,Govt of India,Hyderabad  for preparation of  digital data for the purpose of preparing Master Plan of our  municipality area for a sum of Rs 253000.00.In this connection I would like to know whether to recover TDS under section 194C or 194J and also like to know whether to collect IncomeTax from a ISRO ,being a Govt of India organisation.Kindly suggest rule position.

chakravarthy. 

[Jagadeesh Tiruveedula]

Dear chakravarthy,

what kind of services your company availed.. please specify clearly..

Jagadeesh

[Amit Mittal]

Dear Mr Sid

In My Openion, preparation of Digital data fall under techincal service. As such TDS u/s 194J will apply.

Yes ISRO is the Goverment Organisation but I believe its a Govt funded Agency as such you can deduct the TDS while making the payment. For your Information, ISRO is our customer and they deduct our TDS and issue the Form 16A. so it confirms that they have the PAN No and if you deduct the TDS, they can claim credit while filing their TDS Return.

 Hope I answer to your satisfaction

[DEV KUMAR KOTHARI]

Visit the site  -         http://www.isro.org/scripts/Aboutus.aspx, you will find the organisation chart of ISRO, It is headed by the Prime Minister and is under the departmetn of space.

Thus, ISRO is a department of government of India. Therefore income of ISRO is not liable to  income-tax. Government or departmetn of governemtn  is not liable to income-tax, 

 

ISRO or any other government department is required to deduct tax from payments of specified sums made to other parties. This is becasue the recipeitns are not governement. There is specific liability to deduct and depsoit tax at source. So one should not confuse with the liability to deduct tax with liability to pay tax on income.

AI Summary

TDS on technical services applies to payments for digital data; withhold even when the recipient is a government organisation. Preparation of digital data for a master plan is treated as a technical service, attracting withholding under the TDS provision applicable to fees for professional/technical services; the payee's status as a government department does not automatically relieve withholding obligations, and practical indicators such as PAN possession and issuance of Form 16A demonstrate withholding and credit mechanisms.