Can one registered non-profit organisation (RNPO) pay another RNPO? Yes—but the compliance treatment depends entirely on one question: Is the payment for services or is it a voluntary donation (sub-grant)? While both transactions may appear identical in a bank statement, they have very different tax and regulatory implications. If one RNPO provides a specific service—such as research, training, or programme implementation—the payment is treated as a commercial transaction. In such cases, TDS pr