Whether TDS to be deducted or not?

Page no : 2

CA Mayank (Practice) (30 Points)
Replied 10 November 2010

I think when we install telehone services, we and telepehone services providing industry signa a contract that they will provide us telephone services and i think it gets covered u/s 194C and as far as other taxes are concern there are many things on which we pay service tax also and are also liable to deduct TDS like rent , etc. So can anybody please clarify that against which notification or anything such like thing relying on which we should not deduct TDS on such service.

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karan sharma (Student CA Final ) (106 Points)
Replied 12 June 2013

tds is not deducted because according to sec 194 j mere colection of fees for the use of standard facilty provide to all those willing to pay for it does not amount to fees having received which does not attract tds

CA Sanjay Bag (CHARTERED ACCOUNTANT) (3340 Points)
Replied 20 June 2013

Mr. Aridam your view is not correct at all . However, it is true that no TDS required to be dedcuted on telephone bill. I mean to say, is not correct to say that as there is sevice tax so no TDS will applicable. In case of payments to bills of professionals like C.A. we have to deduct tax at source even on the amount of service tax.