Deduction of tax at source

This query is : Resolved 

10 November 2009 Is lease rental paid by customer to BSNL, MTNL, etc. liable for deducting TDS?

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10 November 2009 In case of Land line phones no TDS is applicable. in other cases one has to deduct TDS.

10 November 2009 TDS on Telecommunication Services for making phone calls. Only MTNL and BSNL call it a rental. Others call it a recurring charge for a minimum number of calls you make and charge you extra for more calls or other service.

Telephone call is not a contract u/s 194C
It is not a commission under 194H
It is not a rental of equipment u/s 194 I
It is not a Technical or Professional Service U/s 194J

You can rely on the judgment of Skycell by Chennai High Court.


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