Tds on telephone and internet charges

3402 views 10 replies
Is tds applicable on payment of telephone and internet charges. Either sec 194j apply or some other section is applicable
Replies (10)

Hello,
TDS is not deductible on services using technology -- telephone charges, Internet charges, cable TV, leased lines. Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.)

thanks  for  good knowledge

 

I agree with visual goel sir

in case  we received the service of Modom on rent for the purpose of wifi after deducting the net charges we are paying the balance amount weather TDS is applicable , if applicable what is the rate and amount .

Ex. Fixed rate contract of Rs-20,000/- PM, Internet charges received Rs.8900/- Balance amount i am paying to contractor 11,100 (20,000-8,900) 

in case  we received the service of Modom on rent for the purpose of wifi after deducting the net charges we are paying the balance amount weather TDS is applicable , if applicable what is the rate and amount .

Ex. Fixed rate contract of Rs-20,000/- PM, Internet charges received Rs.8900/- Balance amount i am paying to contractor 11,100 (20,000-8,900) 

Leased line internet service is subject to tds under 194J Though there are case laws negating it but none held the same in state of Maharashtra
Leased line internet service is subject to tds under 194J Though there are case laws negating it but none held the same in state of Maharashtra
Leased line internet service is subject to tds under 194J Though there are case laws negating it but none held the same in state of Maharashtra

Yes, TDS applicable due to change in "royalty" defination amendment in section 9 in finance act 2012.

Yes, TDS applicable due to change in "royalty" defination amendment in section 9 in finance act 2012.

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register