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TDS rates

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21 January 2010 Dear CA's,

Need your help in arriving at the applicability of TDS in the following situations..

1. At what rate TDS is applicable in case of payments to be made to Internet service provider (our company has taken a leased line for availing internet services from Tata tele. while paying the rental, what is the TDs to be deducted?)

2. at what rate TDS is applicable in case of equipment lease rentals (as per my level of undestanding, this is u/s 194i. Please correct if wrong).

3. purchase of software (Micrsoft office & specific animation software).

please clarify.

thanks for your advice,
santosh.

21 January 2010 1 it is u/s 194C so 2%

2 Yes, this is u/s 194I so from 1 Oct 09 it is 2%

3 Purchase of software it depends if they are charging service tax or not. mostly these software companies charges VAT and Service Tax both. this is u/s 194J so 10%

22 January 2010 Thanks a lot Mr. Prashant Gupta.




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