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TDS on Internet Services

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19 March 2008 Please inform whether tax is deductible on telephones/Internet under Section 194C. Are there any case laws to support the answer. I have seen some people deduct tax and some do not.

19 March 2008 Telephones/ internet charges are not liable for deduction of Tds under 194 C because these are not covered under the defination of "work "as mentioned by this section.

20 March 2008 People are different,law is different sometimes, Decisions of courts are different, Don't need to worry about all these things. If you want to deduct do it.


20 March 2008 Are there any case laws to support your view.the case of CIT vs Associated Cement Companies 1993(SC) cites any work as any service.Please comment.

20 March 2008 yes........

there is a case law suporting that there is no need to deduct TDS on internet charges.

The case name is Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).

24 March 2008 I believe this case law cites TDS on internet not to be deducted on 194J but no reference to section 194C is made. Please clarify.

26 March 2008
U can refer Circular Nos. 661 and 681, dated 8-10-1993 and 8-3-1994, respectively for the TDS on telecom service

26 March 2008 As per these circulars this is not liable to TDS.


26 March 2008 U may also refer Madras High Court Judgement in case of Skycell Communications Ltd



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