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?
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
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.
CAclubindia
