TDS on telephone Bills
This query is : Resolved
21 January 2011
Hi ,
I would like to Know whether provisions of TDS will be applicable to Payments made to Reliance for Data Card charges .
Reliance bills explictly mentions charges as Monthly rentals . More over Reliance remains the owner of the data card , in the sense that it can stop / block a particular card whenever the situation arises.So the user is just availing the services while reliance still remains the owner . RIL also charges Service Tax on its bills
Will the tenats of section 194 I be applicable to the above said payments assuming that the annual payments exceeds the basic limit of Rs 1.80 Lakhs
I would like to Know whether provisions of TDS will be applicable to Payments made to Reliance for Data Card charges .
Reliance bills explictly mentions charges as Monthly rentals . More over Reliance remains the owner of the data card , in the sense that it can stop / block a particular card whenever the situation arises.So the user is just availing the services while reliance still remains the owner . RIL also charges Service Tax on its bills
Will the tenats of section 194 I be applicable to the above said payments assuming that the annual payments exceeds the basic limit of Rs 1.80 Lakhs
21 January 2011
TDS is not applicable on services using technology -- telephone charges, Internet charges, cable TV, leased lines.
Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J.
Please refer a case law : Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Madras.).
Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J.
Please refer a case law : Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Madras.).
21 January 2011
The above said judgement mentions TDS under 194 J is not applicable .My doubt is whether Section 194 I (under equipments) is applicable for these transaction keeping in mind the Reliance & other operators are owners of the service and users are paying rent (as mentioned in bills) for availing these services.
Guest
Guest
(Expert)
21 January 2011
in our opinion , data card is not an equipment for the purpose of Sec. 194I
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