TDS

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ashwini (Querist)
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11 February 2010 My client is paying Internet Lease Line Charges bimonthly for succeeding two months (say for the month of Jan 10 & Feb 10, ILL charges paid in the month of Dec 09) to the VSNL. These charges is for taking a seperate dedicated line of Internet on Lease, But there is no such lease contract in writting. Bill is coming from VSNL.

Should we charge TDS on the payment made to VSNL for the above?

If yes, under what category and at what rate?

If No, what is the reason?

Thanks

best Regards
Ashwini

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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11 February 2010 Yes, Under section 194C @2%.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 February 2010 TDS not dedcutible on Internet & Leaseline charges

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 February 2010 Here is link to a related decision of the Mumbai ITAT:
http://www.taxguru.in/income-tax-case-laws/payment-made-by-a-member-to-its-stock-exchange-for-vsatlease-lineboltdemat-charges-is-not-fee-for-technical-services-us194j.html#more-19164

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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11 February 2010 Dear Mr. Mahashwari,
Pl. provide me the copy of the order specified above at my mail vijayguptaca104@yahoo.com

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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11 February 2010 Dear Mr. Mahashwari,
Pl. provide me the copy of the order specified above at my mail vijayguptaca104@yahoo.com

ashwini

ashwini (Querist)
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22 February 2010 Dear Aditya,

I have studied the case law reference given by you.
In that no where is give that stock exchange brokers (how immediately liable to pay Lease line charges to any communication agency, say TATA communication, for providing Dedicated lease line of internet) should not deduct TDS on Leaseline charges payable to TATA Communication.

The case law ref given by you is related to the client & stock exchange broker and not related to the stock exchange broker & communication agency.

So can you please provide me some other case law reference.

Thanks

Best regards
Ashwini