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TDS on Internet Connection Usage charges

Sheetal (CA Final Student) (74 Points)

18 November 2008

Whether TDS to be deducted on Internet Connection usage charges? if yes, then under which section and reason for the same.

Thanks in advance

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8 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 18 November 2008

In internet connection service u usually receives bill from the service provider and for that u have contect with them. So that comes under Section 194C and TDS willbe deducted.

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Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 18 November 2008

Yes Sheetal, TDS should be deducted from Internet Connection usage charges.

In my opinion TDS will be deducted U/S – 194J (Fees for professional or technical services), if the service provider is accountable for the job of providing internet connectivity as well as providing technical support.

CA. Yogesh Malpani (Chartered Accountant) (216 Points)
Replied 18 November 2008

No.
Whether a plumber is also be considerd as a technical person if he fits a tap at ur home. 1st u should know what are u guiding to other person otherwise don't post any comment

Shudhanshu Agrawal (Business) (2570 Points)
Replied 18 November 2008

Prabeer do explain to me why are u considering it a technical service but i dont think its a technical service.

Vijay (CA) (254 Points)
Replied 18 November 2008

Originally posted by :CA. Yogesh Malpani
"	No. Whether a plumber is also be considerd as a technical person if he fits a tap at ur home. 1st u should know what are u guiding to other person otherwise don't post any comment	"

Prabeer had given reply as per his understanding.. This forum is for queries and replies not for pin pointing someone . Pls try to do that only .

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Shudhanshu Agrawal (Business) (2570 Points)
Replied 18 November 2008

yeah anybody can be wrong with concept......so we shouldnt critise someone but correct the person

Piyush Jain (CA) (283 Points)
Replied 18 November 2008

Sheetal, TDS will be deducted U/s 194C if a single payment exceeds Rs. 20000/- or payment during the year exceeds Rs. 50000/-. The rate of TDS will be 2.06%

Piyush

(Guest)

dear the reply given by you seems to be wrong, since internet connection usage charges attracts tds u/s 194 C. So, why to make deduction at higher rate and attempt wrong and meaningless accounting.

Originally posted by :PRABEER SARKAR
"	Yes Sheetal, TDS should be deducted from Internet Connection usage charges. In my opinion TDS will be deducted U/S – 194J (Fees for professional or technical services), if the service provider is accountable for the job of providing internet connectivity as well as providing technical support.	"