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Tds on bulk sms bill

Sahil (NA) (159 Points)

11 January 2016

Hi. Can anyone tell me whether to deduct TDS on SMS Service provided by Vendor. Please support your answer with any circular.

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21 Replies

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 11 January 2016

if Single Payment Exceed 30000 And Aggreegate During The Year Rs.75000 Then Deduct TDS u/s 194C

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Sahil (NA) (159 Points)
Replied 11 January 2016

Why Tds deduct under Section 194 C. There is no contract between us

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 11 January 2016

it will covered u/s 194C that's why

Sahil (NA) (159 Points)
Replied 12 January 2016

Can you tell me why it will be covered u/s 194C?? We dont have any contract we are paying only for their invoice. @ Mehul

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 12 January 2016

contract doesn't means you have to be written contract even if you are making payment in lumpsum payment for annual or monthly payment the alos it will covered under contract

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Sahil (NA) (159 Points)
Replied 12 January 2016

But in our books what we would show?? Because They have raised the bill charging service tax???

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 12 January 2016

https://pdicai.org/AnsDisp.aspx?e=6lDgRyDz0WHp7SQx%2BT2tsLutbp7rFpEsWiqZ0AzikUS5c%2F8Kv%2BNR4a5J3BFYyn58Z5HVKcIxxKw%3D

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 12 January 2016

you have to deduct TDS excluding Service Tax amount

Sahil (NA) (159 Points)
Replied 12 January 2016

I have googled about the answer. So many site is showing that tds should not be deducted. Because this is a marketing service

Sahil (NA) (159 Points)
Replied 12 January 2016

Why do you think tds should be deducted u/s 194C?? @ Mehul

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CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 12 January 2016

Check In This Attachment

Attached File : 1410080 20160112132207 knowledge portal the institute of chartered accountants of india.pdf downloaded: 445 times

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 12 January 2016

Since Some Are Saying Yes To Deduct TDS and Some Are Not I Think You Have To Be At Safe Side To Better Deduct TDS

Sahil (NA) (159 Points)
Replied 12 January 2016

okk. one more question if we deduct tds on contract. In which head we will show this expenses?? Because it is for marketing of our company

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 12 January 2016

You Can Creat Sub Ledger As SMS Charges Under Advertisement Exp/Business Promotion Exp. or Whatever TDS Amount You Deducted It Will Come Under The Duties And Taxes