Tds
This query is : Resolved
17 August 2012
Dear Sir,
I have a small Doubt in deduction of the tds
Whether TDS is to be deducted on a contractual payments for example a contract with a telephone company for a fix amount for providing telephone or lease line ??? Bill received from a telephone company which is base amount + service Tax @ 12.36% on it.
It is a contract with a company for a specific work for specific amount. Service tax is charged on a bill by a telephone company as he is acting as a service provider.
What about the TDS in such case ???
I have a small Doubt in deduction of the tds
Whether TDS is to be deducted on a contractual payments for example a contract with a telephone company for a fix amount for providing telephone or lease line ??? Bill received from a telephone company which is base amount + service Tax @ 12.36% on it.
It is a contract with a company for a specific work for specific amount. Service tax is charged on a bill by a telephone company as he is acting as a service provider.
What about the TDS in such case ???
Nischit Sanghavi
(Expert)
17 August 2012
As it is a case of contract, TDS is require to deduct @2% on net amount i.e.including Service Tax.
17 August 2012
Thanks for your reply.
Can you give me some notification or section which states this ???
I am facing a problem with a telephone company. They are not accepting the TDS deduction and the deducted amount is getting add back to my next bill.
As per telephone lease line service provider this TDS deduction is exempt by low.
Can you give me some notification or section which states this ???
I am facing a problem with a telephone company. They are not accepting the TDS deduction and the deducted amount is getting add back to my next bill.
As per telephone lease line service provider this TDS deduction is exempt by low.
Nischit Sanghavi
(Expert)
17 August 2012
Leased line means Internet Leased line?
Nischit Sanghavi
(Expert)
17 August 2012
There is no need to deduct the TDS for Internet. It has also been held in case of Skycell Communication Ltd.v.Deputy CIT(2001)251 ITR 53 (Mad).
Nischit Sanghavi
(Expert)
17 August 2012
R u satisfied from this reply?
17 August 2012
Yes !!! Leased Line is Internet Leased line as well as telephone - that is Land line.
So no need to deduct a TDS ???
So no need to deduct a TDS ???
Nischit Sanghavi
(Expert)
17 August 2012
I given you a case law reference, find the case from some where and read it if you are able to.
Nischit Sanghavi
(Expert)
17 August 2012
U welcome!!!
No need to say thanks. We are here to solve each other problems.
No need to say thanks. We are here to solve each other problems.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- EPF ECR NEW RULES Sep 17th 2026
- MSME disclosure and disallowance
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
