Tds on telephone bills

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Whether Telephone bills paid to mobile companies are covered under the definition of royalty. and whether TDS to be deducted on u/s 194J.

CA Parul Saxena

CA Parul Saxena (Expert)
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07 November 2014 no tds to be deducted on telephone bills.........

Amol S Joglekar

Amol S Joglekar (Expert)
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07 November 2014 if it is Leased line rental payment...Do deduct TDS. else as CA Parul Saxena has rightly said : no TDS.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 SIR,

WHAT IS LEASED LINE RENTAL PAYMENT....??

Amol S Joglekar

Amol S Joglekar (Expert)
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07 November 2014 BSNL provides dedicated internet lines on lease rental basis.

Ganeshbabu K

Ganeshbabu K (Expert)
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07 November 2014 In my knowledge no TDS applicable even if leased line rental also
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which was held in Re:Sky cell communications private limited
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payments for basic necessaties like electricity,telephone, tds may not appllicable
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moreover no direct manual involvement will be there for rendering telephone service,hence tds not required
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There may be difference of opinion from others,..u may go as per urs best opinion

Amol S Joglekar

Amol S Joglekar (Expert)
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07 November 2014 True. But sky cell case was more focused on wirelees loop and satellite communication. In BSNL's case dedicated lines are laid for the client and TDS is duly accepted by BSNL through its PRO. The crucial point, according to me, is DISALLOWANCE, to which everyone is scared of........So, the growing tendency on the part of, in case of any doubt, MAKE TDS, that too with higher the rate. Your views please, Ganeshbabu K