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Tds on payment to internet broadband payment.

rakesh (student) (457 Points)

08 January 2015

Whether tds need to be deducted on payment made to pvt co. for broadband connection and if yes under which section.

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9 Replies

Akash Barman (Article) (383 Points)
Replied 08 January 2015

TDS HAS TO BE DEDUCTED AS PER SEC 194J

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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 "

(Guest)

Apoorv, lets not keep forums personal. Fact of the matter is, you're apparently unaware of a 3 year old update and without seeking reference to where Akash got his information from, blasted him for being incorrect.

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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.