My client is paying a fixed sum towards internet leased line on monthly basis. The sum exceeds prescribed amount u/s. 194C. Should tax be deducted? If it is so, then such services are covered under 194C or 194J?
Sathish Karunakaran (ACA) (614 Points)
27 November 2008My client is paying a fixed sum towards internet leased line on monthly basis. The sum exceeds prescribed amount u/s. 194C. Should tax be deducted? If it is so, then such services are covered under 194C or 194J?
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 27 November 2008
tds is not deducted on internet & telephone bill there is no provison in the income tax for deduction of tax
CA Yasaswy Sarma Veluri
(Chartered Accountant)
(605 Points)
Replied 27 November 2008
| Originally posted by :CA Hemant T Dewani | ||
| " | tds is not deducted on internet & telephone bill there is no provison in the income tax for deduction of tax | " |
Sec 194 J Fees for Professional or Technical Services or Royalty or Non Compete Fee
a. Any person paying
1. Fes for Professional services
"Professional Services" means Services rendred by a person in ocurse of carrying on legal, engineering, or architectural profession or th profesion of accountancy or technical consultancy or interior decoration or advertising or information technology or other such profesion as is notified by board for purposes of sec.44AA or of this section.
Internet Doesnt Fall under the Information Technology or Technical Consultancy as it inculdes only softwares and Training Etc..
It also wont come under 194C as there is no specific Contract..
There is no Need to Deduct TDS for Interent under Any Sec.
Bala
(CFO, Cogzidel)
(59 Points)
Replied 27 November 2008
Hi,
"Internet connection" falls under "Technical Service" and hence, tax under section 194J has to be deducted at source. This has been confirmed by many practicising CAs.
Tax has to be deducted irrespective of the service provider, be it VSNL, Bharti or others.
Regards
Bala
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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