TDS on SMS SERVICE

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SANDEEP KUMAR (Querist)
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22 July 2011 Ours is a Pvt Ltd Company, has been making payment under the head "Advertisement Expenses" to one of our Service provider.

The nature of service is as follows:

'It is a charge for the cost of providing us Cellphone / Mobile numbers on which we send message regarding our products'.

Till now,the service provider raises a bill and we make payment without deducting tax at source.

My question is: "Do we have to deduct tax at source on such service provided..?"

Plz reply..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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22 July 2011 In respect of payment of commission to external parties for procuring orders for the company’s products, rendering of such services is not covered under Sec.194C, but may involve payment of fees for professional or technical services, in which case tax may be deductible under Sec. 194J