t.d.s


This query is : Resolved 

(Querist)
17 February 2009 why tds not deducted on telephone service provided by non govt body?

17 February 2009 There is no question of "Why" in Income tax Act. When there is no provision in the Act to deduct TDS then TDS is not deducted.


17 February 2009 However, if you are raising this general question then in my opinion Telephone service is general service used by everybody in this country. This type of service cannot bring into the ambit of TDS due to difficulty for general people. Further this service is being provided by very few pvt. players who are paying advance taxes already.


17 February 2009 TDS provision is come into existence to avoid the tax evasion in some cases like contractors etc. who will not file income tax returns further to collect tax in well in advance. However there is no such need in Telephone services.

If TDS will be applied in this case then deductor of taxes will in millions and deductee are few.

17 February 2009 IT IS NOT A SPECIALISED SERVICE. YOU MAY REFER TO DECISION IN THE CASE OF SKY CELL COMMUNICATIONS CASE 251 ITR 153(MAD)


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