If XYZ co. provides internet service for the prescribed period says 1 or 2 yrs.
then TDS should be u/s 194c as contract OR 194J as professional fees?
I think it should be 194C (Contract).
Kindly suggest. Waiting for reply,
Santosh V. Thakur (Sr. Accountant) (187 Points)
23 August 2012If XYZ co. provides internet service for the prescribed period says 1 or 2 yrs.
then TDS should be u/s 194c as contract OR 194J as professional fees?
I think it should be 194C (Contract).
Kindly suggest. Waiting for reply,
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 23 August 2012
In this case 194 C will apply.....
CA SANDESH MAHIPAL
(Practicing in GST and MSME )
(1985 Points)
Replied 24 August 2012
TDS will not be deducted on payment made for receiving internet facility.
reference can be made in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.)
REGARDS
CA SUNNY AGGARWAL
TAX CONSULTANT