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TDS

Sitaram (Accountant) (87 Points)

23 December 2008

we r the Software co. and we have taken internet connections on lease so it will attract TDS on payment or Not plz specify

thx...........

sitaram

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7 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 23 December 2008

Yes....

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(Guest)

yes it will attract.

Anil Kumar Patni (Chartered Accountants) (27 Points)
Replied 23 December 2008

Internet Connection Charges are niether any work nor fee for technical services, therefore in my opinion it does not attract the provision of section 194C or 194J.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 23 December 2008

Internet connection lease is not in any way contract.You are paying on used basis.This will not be liable to any TDS

Bala (CFO, Cogzidel) (59 Points)
Replied 23 December 2008

Hello Sitaram,

'Leased line connection' falls under "Technical Services" and is liable to be deducted tax at source under section 194J.

Additional information to you is that, it is exempt from FBT.

Regards

Bala

www.cogzidel.in

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Sitaram (Accountant) (87 Points)
Replied 23 December 2008

Hi thank u for all the reply but now i m confuse b coz some r saying yes & some r saying no can anyone tell me which is correct any professional specially CA

srinivasan (service) (898 Points)
Replied 23 December 2008

The question whether the leased line connection falls under the technical services or not has been ansered by various courts. But in practise, the TDS is deducted u/s 194J even by the ISP's and other service providers for the interconnection charges as well.