Dear Sirs,
Net server installation and net
contention charges.
Should deduct TDS if Yes Than which Section ?
Net Charges
Pankaj (sudent) (91 Points)
22 April 2010
2 Replies
CA Babit Khurana
(learning is my passion)
(338 Points)
Replied 22 April 2010
If payment of installationcharges is more than Rs 20000 in sinle payment and rs 50000 in agg. than it is compulsory to deduct tds under setion 194C.
Rate of deduction 1% in case of individual or huf
2% in any other case.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 22 April 2010
Dear Pankaj,
TDS is not deductible 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. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).
Other payments outside the purview of TDS are
(a) Statutory payments -- fees, cess, taxes,
(b) Clearing house charges, stock exchange charges, demat charges,
(c) Subscripttion to databases.
regards,
ratan
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