Whether tds need to be deducted on payment made to pvt co. for broadband connection and if yes under which section.
9 Replies
APOORV JAIN
(CA Final )
(69 Points)
Replied 08 January 2015
No Need to deduct any TDS on payment of Internet Charges.
Dear Akash,
Kindly clarify as to how it can go for 194J.........
While posting your coment kindly refer this note marked in RED
"Maintain professionalism while posting and replying to topics."
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 08 January 2015
Apoorv is at correct. no need to deduct the TDS on payment of broadband charges.
Akash Barman
(Article)
(383 Points)
Replied 08 January 2015
IMPLICATIONS OF THE EXPLANATIONS AS INSERTED UNDER FINANCE ACT IN THE DEFINITION OF ROYALTY AS PER FINANCE ACT 2012..
THE FINANCE ACT 2012- TDS U/S 194J ON DOMESTIC PAYMENTS
EFFECTIVE FROM 1.4.2012
A)PAYMENT OF TELEPHONE BILLS
B)PAYMENT OF INTERNET CHARGES/BROADBAND CHARGES
C)PAYMENT OF BANDWITH /ROUTER CHARGES
D)ONLINE SUBSCRIPTION TO WEBSITES/DATABASE
N Mr APOORVA PLS UPDATE UR KNOWLEDGE N FOLLOW THE POINT MARKED IN RED STRICTLY
"EVERY SINGLE USER HAS THE RIGHT TO EXPRESS HIS OPINION , THE RESULT OF BEING RIGHT OR WRONG FOLLOWS "
APOORV JAIN
(CA Final )
(69 Points)
Replied 08 January 2015
Dear Akash
Can you please share the link to finance bill,2012 where such amendment is given because i can't find any such inclusion in the bill.
SATISH
(CA Final & CS Final)
(90 Points)
Replied 08 January 2015
Since the broad payments cover two types some are broadband which varies from month on month basis and some are fixed in nature those are called leased line payments so leased line payments are tax deductible under section 194J . Companies like ITES are making huge payments on these services so the accountants should understand the nature of services ie broadband or leased line payments for deduction of tds , so my advice is to deduct the tax on safer side since tds amount also belongs to the client and credited to his account.
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 09 January 2015
Hi Akash, Adit and Satish, please share the provision of meaning of royalty inserted by Finance Act 2012.
I have read only right for use or right to use of software inserted there.
SREEPAL REDDY GURRALA
(EXECUTIVE)
(38 Points)
Replied 11 January 2015
leased line payments are tax deductible under section 194J . so my advice is to deduct the tax on safer side since tds as per section 194j
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