Exemption from TDS -Supplies made by Government Departments and PSUs to other Government Departments and vice-versa.

Central Government vide Notification No. 73/2018 – CT dt.31st Dec, 2018 notified exemption to supplies made by Government Departments and PSUs to other Government Departments and vice-versa from TDS and thus insert the following proviso after the second proviso, namely:-

“Provided also that nothing in this notification shall apply to the supply of goods orservices or both which takes place between one person to another person specified underclauses (a), (b), (c) and (d) of sub-section (1) of section 51 of the said Act.”