TDS on Prepaid Mobile Recharges

This query is : Resolved

Gurmeet Singh (Querist)
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08 May 2009 I have to pay a consolidate bill of Rs.50261.00 to an communication store towards Online Prepaid Mobile Recharges of 500 nos done by him. So should I deduct TDS under section 194C as payment to Deemed contractor or the deduction will be under other section of TDS or there wont be any deduction at all?

Please help.

Thanks,

Gurmeet

chetan soni

chetan soni (Expert)
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09 May 2009 Telephone expenses are outside the ambit of TDS. IF that vendor is taking his service charges which is included in the bill then you need to deduct the tds on entire amount, in case if service charges is not shown seperately.

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taxindiaconnect

taxindiaconnect (Expert)
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09 May 2009 When you are purchasing prepaid cards, it is not a payment to the telepone service provider. It is a simple transaction of purchase from the market. No TDS is applicable. Even in the case of a payment to telphone service prodiding company also no TDS is required to be withheld. Please refer the Chennai High Court Decicion in the case of Skycell communications.

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Gurmeet Singh

Gurmeet Singh (Querist)
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11 May 2009 Dear Champs,

Thanks a ton for your valuable feedback.

Regards,

Gurmeet R