TDS on broadband services
This query is : Resolved
20 July 2010
Dear Sirs
The issue is whether TDS has to be deducted on leased line broadband service charges.
Pl. clarify my doubts with suitable supportings.
with Regards
The issue is whether TDS has to be deducted on leased line broadband service charges.
Pl. clarify my doubts with suitable supportings.
with Regards
20 July 2010
No TDS deductible.
Telephone services are not covered - When a person decides to subscribe to a cellular telephone service in order to have the facility of being able to communicate with others, he does not contract to receive a technical service. What he does agree is to pay for the use of the airtime for which he pays a charge. The fact that the telephone service provider has installed sophisticated technical equipment in the exchange to ensure connectivity to its subscriber does not on that score make it provision of a technical service to the subscriber. The subscriber is not concerned with the complexity of the equipment installed in the exchange, or the location of the base station. All that he wants is the facility of using the telephone when he wishes so, and being able to get connected to the person at the number to which he desires to be connected. What applies to cellular mobile telephone is also applicable to fixed telephone service. Neither service can be regarded as ‘technical service’ for the purpose of section 194J of the Act - Skycell Communications Ltd. v. Dy. CIT [2001] 251 ITR 53 (Mad.).
Telephone services are not covered - When a person decides to subscribe to a cellular telephone service in order to have the facility of being able to communicate with others, he does not contract to receive a technical service. What he does agree is to pay for the use of the airtime for which he pays a charge. The fact that the telephone service provider has installed sophisticated technical equipment in the exchange to ensure connectivity to its subscriber does not on that score make it provision of a technical service to the subscriber. The subscriber is not concerned with the complexity of the equipment installed in the exchange, or the location of the base station. All that he wants is the facility of using the telephone when he wishes so, and being able to get connected to the person at the number to which he desires to be connected. What applies to cellular mobile telephone is also applicable to fixed telephone service. Neither service can be regarded as ‘technical service’ for the purpose of section 194J of the Act - Skycell Communications Ltd. v. Dy. CIT [2001] 251 ITR 53 (Mad.).
Message likes :
1 times
20 July 2010
PACIFIC INTERNET (INDIA) (P) LTD. vs. INCOME TAX OFFICER (TDS)
Bandwidth and network operating facilities availed of by assessee from other telecommunication concerns being standard facilities are not includible in technical services within the meaning of s. 194J r/w Expln. 2 to cl. (vii) of s. 9(1), not attracting deduction of tax at source under s. 194J. In favour of : Assessee Cases referred to HFCL Infotel Ltd. vs. ITO (2006) 99 TTJ (Chd) 440 Skycell Communications Ltd. vs. Dy. CIT (2001) 170 CTR (Mad) 238 : (2001) 251 ITR 53 (Mad) Wipro Ltd. vs. ITO (2004) 84 TTJ (Bang) 685 : (2003) 86 ITD 407 (Bang)
Bandwidth and network operating facilities availed of by assessee from other telecommunication concerns being standard facilities are not includible in technical services within the meaning of s. 194J r/w Expln. 2 to cl. (vii) of s. 9(1), not attracting deduction of tax at source under s. 194J. In favour of : Assessee Cases referred to HFCL Infotel Ltd. vs. ITO (2006) 99 TTJ (Chd) 440 Skycell Communications Ltd. vs. Dy. CIT (2001) 170 CTR (Mad) 238 : (2001) 251 ITR 53 (Mad) Wipro Ltd. vs. ITO (2004) 84 TTJ (Bang) 685 : (2003) 86 ITD 407 (Bang)
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
- House Property Reporting in ITR
- TDS Claim year
- Relief u/s Section 89
- Rent lease agreement
- TDS Challan Code
- Lease agreement and tax on sale
- SALE BILL AGAINST GOODS RETURN
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Merchant Export Accounting
- Supply through E-commerce Operators
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
