Tds

This query is : Resolved

Sowmya.S.Balan

Sowmya.S.Balan (Querist)
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16 October 2014 Dear sirs,

one of my client purchases cloud telephoning services & service provider charged service tax on that bill. After that our client provide the same service without any additions. whether my client has to deduct tds on service purchased. actually our client does not use these service for own use. kindly reply me

Ganeshbabu K

Ganeshbabu K (Expert)
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16 October 2014 In my opinion services for cloud telephoning not liable for TDS.

My view is on base of judgement in skycellcommunication ltd.(do google for case)

if any professional charges incured for rendering that service(service by manpower)then tds may be applicable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 October 2014 Rightly advised by learned expert. TDS not required to be deducted.

Based on following Judgments:

Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).

Pacific Internet (India) (P) Ltd. v. ITO TDS Mumbai (2009) 27 SOT 523 (Mum)