Tds applicability on sms services
This query is : Resolved
16 May 2012
DEAr friends
We are doing business of developing software & providing software services .we have taken SMS facility from one party ( they charged service tax from us) and give promotional SMS service to our clients. Whether we have to deduct TDS before making payment to that party ? IF yes under which head ? kindly help us
We are doing business of developing software & providing software services .we have taken SMS facility from one party ( they charged service tax from us) and give promotional SMS service to our clients. Whether we have to deduct TDS before making payment to that party ? IF yes under which head ? kindly help us
16 May 2012
If the services is more than Rs.30000/-for the Financial Year then you have to deduct TDS u/s 194J @10% under the Head Professional Fees
16 May 2012
Such type of SMS services are automatically provided by machines by use of sophisticated technology and not by any human interface, it is not technical service and tds deduction U/s 194J is not applicable. Refer to case of CIT vs Bharati Cellular Ltd (2008).
Due to this reason no tds is deductible on SMS services.Further no TDS is being deducted on telephone , mobile bill payments although service tax is charged on them.
CA.Richi Saxena
Due to this reason no tds is deductible on SMS services.Further no TDS is being deducted on telephone , mobile bill payments although service tax is charged on them.
CA.Richi Saxena
Message likes :
5 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Import license renewal
- Credit profit and loss account in case of bonus share received
- How to determine cost of acquisition of shares on De-merger or Merger
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
