TDS on Broadband Leased line Internet Service
This query is : Resolved
CA Jigisha
(Querist)
12 July 2011
Hello All,
Do the Broadband Leased line Internet service attract TDS?? under which section? 194C, 194I or 194J? It is clear from the case of Skycell that 194J is not attracted but whether 194C or 194I is also not attracted??? The assessee in question is not the end user to use the internet service but the company is the mediator. The company purchases Lease line for 45 MBPS internet from a company who purchases lease line from Reliance. The assessee company again sells the Internet services to end user customers.
Please note that the company doesn't use internet for its own business but it sells it forward. Which section is attracted?
Do the Broadband Leased line Internet service attract TDS?? under which section? 194C, 194I or 194J? It is clear from the case of Skycell that 194J is not attracted but whether 194C or 194I is also not attracted??? The assessee in question is not the end user to use the internet service but the company is the mediator. The company purchases Lease line for 45 MBPS internet from a company who purchases lease line from Reliance. The assessee company again sells the Internet services to end user customers.
Please note that the company doesn't use internet for its own business but it sells it forward. Which section is attracted?
13 July 2011
TDS is not deductible on services using technology -- telephone charges, Internet charges, cable TV, leased lines. Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).
Other payments outside the purview of TDS are
(a) Statutory payments -- fees, cess, taxes,
(b) Clearing house charges, stock exchange charges, demat charges,
(c) Subscription to databases.
Other payments outside the purview of TDS are
(a) Statutory payments -- fees, cess, taxes,
(b) Clearing house charges, stock exchange charges, demat charges,
(c) Subscription to databases.
13 July 2011
TDS is not deductible on services using technology -- telephone charges, Internet charges, cable TV, leased lines. Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).
Other payments outside the purview of TDS are
(a) Statutory payments -- fees, cess, taxes,
(b) Clearing house charges, stock exchange charges, demat charges,
(c) Subscription to databases.
Other payments outside the purview of TDS are
(a) Statutory payments -- fees, cess, taxes,
(b) Clearing house charges, stock exchange charges, demat charges,
(c) Subscription to databases.
CA Jigisha
(Querist)
13 July 2011
Broadband leased line does not attract 194J but is it considered under 194I or 194C for rent or contract??
16 July 2011
No. It is not considered either for 194C or for 194I. No need to deduct TDS on such payments.
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
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- 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?
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
