TDS on Internet services

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Alex Fernandes (Querist)
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02 July 2009 Hi I want to know that my client had made a payment of Rs 7,52,000/- to Tata Communications for Internet services in this case how much TDS will be deducted and is it necessary to dedeuct TDS in this case. If the TDS is not deducted then is it the breach of rule.

CA's advice is highly recommended at your earliest.(urgent)

chetan soni

chetan soni (Expert)
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02 July 2009 Yes,

The internet services are covered u/s 194J as professional & technical services.

This will deducted @ base rate 10%+10% on base rate as surcharge + 3% on (base rate+surcharge) so total will be 11.33%.

Yes it is required to deduct the TDS as per the provisions of Chapter XVIIB of income tax act.

Failure to deduct the same will attract the disallowances of expenses u/s 40(ia).