tds
This query is : Resolved
15 September 2010
whether tax is to be deducted on payment made for internet leased lines?if so uner which section ?
15 September 2010
In my opinion.... its a contract payment for providing service. Hence TDS under section 194C will apply.
15 September 2010
No, TDS will not apply. 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.).
When the assessee has availed the bandwidth services and other
infrastructure for providing the internet access to its customers, the payment made by the assessee to VSNL, MTNL and other
concerns for availing the services of the bandwidth network infrastructure cannot be said to be technical services within the
meaning of section 194J read with Explanation 2 to clause (vii) of
section 9(1) of the Income-tax Act.
ITAT, MUMBAI BENCH `D’, MUMBAI
Pacific Internet (India) Pvt. Ltd. v. ITO, Dated: December 23, 2008
When the assessee has availed the bandwidth services and other
infrastructure for providing the internet access to its customers, the payment made by the assessee to VSNL, MTNL and other
concerns for availing the services of the bandwidth network infrastructure cannot be said to be technical services within the
meaning of section 194J read with Explanation 2 to clause (vii) of
section 9(1) of the Income-tax Act.
ITAT, MUMBAI BENCH `D’, MUMBAI
Pacific Internet (India) Pvt. Ltd. v. ITO, Dated: December 23, 2008
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