Regarding TDS Deduction on Internet Expenses

This query is : Resolved 

18 December 2009 Every Time we generally do not deduct TDS on Internet Expenses incurred for Business. But If there is Contract between the Telecom Company and the very company which is utilizing the internet suppose between Tata Consultancy Services and Airtel Ltd.So far as agreement is concerned it is done between companies mostly in I.T.Companies. What is the reason that despite agrrement company is not liable to deduct tax in this case? Or it is wrong,Company should be deducted TDS as contract Rate.

18 December 2009 yes if contact create then TDS always applicable


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