How to Handle TDS Deduction for a Service Provider with TAN but No PAN?

We have hired a government research institute (ICAR body) to provide training and develop content materials. We need to release their service fee. The issue at hand is that the institute has a TAN number but no PAN number. How can we process TDS deduction in this case? Please suggest.

Thanks

I understand TDS is not applicable for any payment to government bodies. For details, you may refer to section 196 of the Income Tax Act.

Thanks,
V K Gupta.

The INDIAN COUNCIL OF AGRICULTURAL RESEARCH is a department of the Ministry of Agriculture (Central Government). Payments to ICAR are exempt from TDS. Please do not deduct any TDS but show the same under a special category in the return as Gross Payment and TDS as Nil.

Regards,
Ramakant

To the best of my knowledge, no one can get a TAN number without a PAN number. Are you sure they do not have a PAN number?

Clarification on PAN and TAN Requirements

There is no need for only PAN holders to get the TAN. For example, government authorities do not require a PAN.

In the case of the private sector, consider an example where an educational institute is running too many schools. In this scenario, the original body, i.e., the educational institute, will hold the PAN, and the subordinate schools/colleges do not need to obtain a PAN. They fall under the umbrella of the educational institute and should apply for a separate PAN.

Regards,
Ramakant