29 January 2009
Should TDS be deducted from Telephone Bills if the limit of 50000 of the year is exceeded or likly to exceed. If a corporate unit has many lines or Mobile numbers separate for employees, is liable to TDS being payments made to same entity. can payment to BSNL or MTNL be treated as government payment? your answer should be with case law or circular but not own belief or assumptions
30 January 2009
why not? Any case law or circular is it not an implied contract. whether written contract is necessary? at initial stage company fill up the form of client details and some rules & conditions are also there.
30 January 2009
Usage of leased line for data transmission is a standard service and hence based on the judgement of Skycell Judgement 2001-(251)-ITR -0053 -MAD, it has been held that the TDS u/s. 194J is not applicable for such services. The lines of the judgement were as follows "Section 194J, as also Explanation 2 in section 9(1)(vii) of the Act were not intended to cover the charges paid by the average house-holder or consumer for utilising the products of modern technology, such as, use of the telephone fixed or mobile, the cable T.V., the internet, the automobile, the railway, the aeroplane, consumption of electrical energy, etc. Such facilities which when used by individuals are not capable of being regarded as technical service cannot become so when used by firms and companies. The facility remains the same whoever the subscriber may be - individual, firm or company.". Also TDS will not be applicable u/s. 194C since there is no contract for work and labour.
Henve I feel TDS is not applicable in the instant case
CAclubindia
