Tds for telephone bills

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2015 Dear Sir,

Kindly advice whether the threshold limit for tds on contractors is applicable to the monthly payment to telephone companies against usage of cug connections (corporate connections)

We have taken a cug connection from a reputed telephone company.

kindly advice

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

18 September 2015 No. TDS not applicable in the given case.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

18 September 2015 If it includes any RENT...say for example LEASED line rental.... then TDS is applicable, otherwise not applicable

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2015 thank you sir, hope this will be deducted @ 25 % under section 194 C

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

19 September 2015 TDS is not deductible on services using technology -- telephone charges, Internet charges, cable TV, leased lines. Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 September 2015 We are deducting "TDS" on leased line rentals payment to BSNL. (No TDS on telephone bills)

Surprisingly though, BSNL has never raised any objection to this.