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TDS on internet charges

19 June 2018

Anybody plzz give me some Clarification regarding whether tds applies to internet charges or not???with any supporting section no. or articles or notification...

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6 Replies

Jatin (Accountant) (3479 Points)
Replied 19 June 2018

No TDS on internet charges

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vishwa jothy (7 Points)
Replied 19 June 2018

could you pls give any supportings??

Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 19 June 2018

If internet connection is in the nature of contract than TDS should be deducted u/s 194C @ 1%/2% of single payment exceeds 30,000 or aggregate payment exceeds 1,00,000 during a financial year

ROHIT KHUTETA (STUDENT) (87 Points)
Replied 19 June 2018

if there's written agreement between the service provider and receiver then tds should be deducted as per sec 194C and the same will be applicable in case of AMC

Jatin (Accountant) (3479 Points)
Replied 19 June 2018

No, you are not required to deduct TDS (TDS not applicable on internet charges also section 194C not applicable)

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vishwa jothy (7 Points)
Replied 20 June 2018

Thanks for ur replies....
Bt my query is for instance, if a retailer is providing internet services for a firm by getting license from the concerned telecom company say BSNL,then he is liable to deduct tds u/s 194J as he is paying a sort of royalty to the BSNL and what is our TDS liability here as we r receiving the service of internet from the retailer??though it is a contract it is n the nature of telecommunication service...do we have to deduct under 194C or 194J???