Tds applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 October 2017 We are Pvt Ltd company. We have purchase email services of gmail gsuit from vodafone on yearly bases. Cost is based on per email id. We are suppose to pay around 42000/- to them.

My query is - whether we have to deduct TDS on this payment ? As vodafone provide said it is category under telecom so NO TDS to be deduct.
Please guide what to do ?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

24 October 2017 as per sec 194C if Following Criteria fulfill than not to deduct tds if it is Single Payment than TDS is applicable@2%

No tax is required to be deducted in the following cases:

Where the sum paid or credited in pursuance of any contract does not exceed Rs. 30,000,or
where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year does not exceeds Rs. 1,00,000, the person responsible for paying such sums will not deduct TDS under this section.