Sale of Goods

This query is : Resolved 

11 November 2008 Sir,
i am an articled assistant,
i got some doubt regarding goods definition
in the case of bandwidth purchased from Internet Service Provider Do we need to deduct the TDS.
If so what is the Percentage of TDS.
Please Clarify me

11 November 2008 Nilesh Shah Writes:
Cell: 92246-59941
E Mail: nilesh63@vsnl.com

You don't need to deduct TDS on purchase of band with. There is a distinction between fees for technical service under section 194J & technology oriented service. Some human intervention is required so that it is fees for technical service. When a phenomenon happens on its own through complex equipment & without any human intervention it is not fees for technical service and will not attract TDS. Band with is a complex system which functions on its own.

I cannot understand what is the relevance of Goods as defined in the Sale of Goods Act.

Sincerely,

Nilesh Shah

12 November 2008 Sir,
thanks for First answer
i would like to know
if one Registered Internet Service Provider(ISP) enter into a contract with another Registered ISP for purchase of Bandwidth what are the tax implications which taxes will be applicable to that purchase.
Will it attract Sec.194C of the Income TAx Act.
is there any exception to not to deduct the TDS.


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