• In terms of sec. 51(1), the Government may mandate the following person to deduct tax at source:
  • a. A department or establishment of the Central or State Government, or
  • b. Local authority, or
  • c. Governmental agencies, or
  • d. Such persons or category of persons as may be notified, by the Central or a State Government on
  • the recommendations of the Council. Following are the notified person:
  1. an authority or a board or any other body, –
    (i) set up by an Act of Parliament or a State Legislature; or
    (ii) established by any Government,
  • with 51 % or more participation by way of equity or control, to carry out any function;
  1. society established by the Central Government or the State Government or a Local Authority
    under the Societies Registration Act, 1860;
  2. public sector undertakings.
    Aforesaid persons are required to deduct tax at source from 01-10-2018.
    Tax point: No tax is required to be deducted on supply of goods or services or both from a public sector
    undertaking to another public sector undertaking, whether or not a distinct person.

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