TDS WHERE EXPENSE PAYMENT

dhiraj (Querist) 19 April 2010 This query is : Resolved
WHETHER TAX WOULD BE DEDUCTED IF THE EXPENSES PAYMENT IS BEING MADE TO VENDOR/PAYEE UNDER COURT AWARD. IN THE NORMAL CIRCUMSTANCES TDS IS DEDUCTED AS PER THE PROVISION OF INCOME TAX ACT.

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Raj Kumar Makkad (Expert) 19 April 2010
Yes. TDS is required to be deducted in the given case.

A V Vishal (Expert) 19 April 2010
There is no distinction in law that TDS should not be deducted if the payment is under a decree of the court. All expenses on which TDS ought to be made is to be deducted at source immaterial whether it is routine or through a court order.