A company is providing Invoice of Bulk SMS Credits and charging Service Tax @ 12.36 %.
My Query is that TDS is applicable on the payment. If yes, under which section ?
Thanks
Diwakar Mishra
7 Replies
PRITAM JAIN, CA , CS
(Practising CA CS)
(398 Points)
Replied 23 May 2012
Hi Diwakar.
Can u explain me what is Bulk SMS credit and the exact nature of this transaction....????
Regards
KARANDEEP,CA,B.Com,CS FNL
(JOB)
(457 Points)
Replied 24 May 2012
No tds is required to be deducted as there is sale of sms........same as by the mobile company...any clarification welcome
jamsheed adam
(CA)
(45 Points)
Replied 24 May 2012
Dear Karandeep ji,
On 'sale' of sms, service provider cannot charge service tax.
We have to analyse the correct nature of service, it may be covered by either 194C or 194J as a technical service.
Diwakar Mishra
(Accountant)
(136 Points)
Replied 24 May 2012
In my view, bulk sms credits is a sale and company should not charge service tax on this sale.... Please guide.
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