Ramakrishna (Financial Executive) (438 Points)
09 October 2008Dear Friends!
One of our client who is engaged in software developing availed two dedicated lease lines for their branch offices one from BSNL and another from Airtel and making payments to the tune of Rs. 10 Lakhs and Rs. 12 Lakhs per annum. Will anyone state the exact provison in which TDS to be made - 194C? or 194I? or 194J?
Expecting early reply!
Goodbye!!
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 10 October 2008
Tax at Source is not required to be deducted
Rohit Khare
(student)
(111 Points)
Replied 10 October 2008
Hi,
TDS need not be deducted u/s 194(I) since nothing as specified in section is taken on rent and hence payment will not take colour of rent as is envisaged in the section.
As far as section 194 C is concerned TDS provisions wil be attracted if the payment is in relation to a Works Contract. Hiring of two dedicated lease lines is not a works contract. Hence no TDS is to be deducted under section 194 C also.
SANDEEP AGARWAL
(Practice)
(35 Points)
Replied 11 October 2008
| Originally posted by :Rohit Khare | ||
| " | Hi, TDS need not be deducted u/s 194(I) since nothing as specified in section is taken on rent and hence payment will not take colour of rent as is envisaged in the section. As far as section 194 C is concerned TDS provisions wil be attracted if the payment is in relation to a Works Contract. Hiring of two dedicated lease lines is not a works contract. Hence no TDS is to be deducted under section 194 C also. |
" |
I want to know whether it is not a service contract? If it is service contract why TDS u/s194C should not be deducted
isha
(student)
(253 Points)
Replied 11 October 2008
Do u know about Turnover Tax , Wealth tax, Professional and gift tax????
how these are treat in income tax act
rupinder dhand
(b. C.A.,ADVOCATE)
(32 Points)
Replied 25 October 2008
| Originally posted by :CA RAMESH KUMAR AHUJA | ||
| " | Tax at Source is not required to be deducted | " |
Rohit Khare
(student)
(111 Points)
Replied 26 October 2008
Hi Sandep Agarwal,
The expression ‘any work’ used in section 194C means ‘works contracts’ and ‘contracts for work’, i.e., ‘labour contracts’ but not ‘service contracts’ or ‘transport contracts’ - Bombay Goods Transport Association v. CBDT [1994] 76 Taxman 334/210 ITR 136 (Bom.).
Because the contract mentioned in the uestion is a service contract provisions of Sec.194C won't be attracted and hence TDS need not be deducted.
This is my opinion, ur opinion might be different.
| Originally posted by :Guest | ||
| " | TDS CHART F.Y -2008-2009 INCOME TAX RATE CHART F.Y-2008-2009 |
" |
what is the TDS rates on vehicle hiring charges ( Cars )( Monthly Rental contract )
It has been held recently in case of Bharathi telecommunication & othrs by the Delhi HC that the interconnection charges, port charges etc paid does not fall under the technical services as it does not require any mannual intervention. The same position would also apply for the dedicated lease lines as well. The provisions of 194I could not attract for these transactions as for renting a property, equipment or machinery one has to have a absolute control / pocession over the same which is missing in the case of lease lines. Moreover in the case of lease lines the same cable would be shared by many customers and therefore it cannot be teated as rent payments under income tax act.
Normally the hiring of vehichle would fall under 194C but after the ammendment to the definition of sec.194I the hiring of vehicles could fall under 194I as well.
Therefore to conclude the intention of the party has to be seen. If it is only for movement of the goods/person from one place to another and the vehichle is in the control of the person who gives it on hire, ie. he appoints his driver and fuel and maintenance is taken care by the owner of the vehicle it would be u/s 194C.
If you take pocession of the vehicle totaly (by operating it yourself or with a driver appointed by you) and pay the owner for the usage hours of the vehicle, or the kms you drove it, then it would be under 194I.
Abeejeet
(N/A)
(27 Points)
Replied 22 July 2010
Hi
IS dedicated Server Also not come under tds ?
We dont provide managed service .
Till i know when an human interface is needed then we can deducted tds but if it not human interfearnce then no tds is is deduted is it correct.
?
CAclubindia
