07 November 2007
do we need to deduct tds if we have made a contract of internet usage with a company and the bill amount is the same every month??? what is needed to be done if it is call centre???
If what you have entered into is a contract, you ought to deduct tax at the prescribed rate at the time of credit to his account or payment thereof whichever is earlier. That the billed amount is fixed (same every amount)is of no consequence here.
The only criteria is that if each payment during the year does not exceed Rs. 20,000/- and the annual payments do not cross Rs. 50,000/- then and then only, TDS can be avoided.
CAclubindia
