01 June 2010
We are using Railtel Bandwidth of 10 Mbps for our Educational Institutions purpose, Recently Tds inspections team visited our Institutions and inspected every transctions attracting TDS and demanding us to Collect and Pay TDS as per section 9 treating it as royalty on Internet bandwidth Charges, but our contentions is to since internet bandwidth is a general service it will not attract any TDs
please give your openion on whether the Internet charges come under Tds of not
01 June 2010
The Authority for Advance Ruling (AAR) and the Delhi High Court recently issued decisions in cases involving the provision of bandwidth to businesses in India by a nonresident provider. In both instances, the decisions were in favor of the taxpayer (see Dell International Services India Pvt. Ltd., decided on 18 July 2008, and CIT v. Estel Communications (P) Ltd., decided on 7 March(2008).