TDS on internet charges, paymnet towards remote server usage

This query is : Resolved 

10 April 2008 One of our clients gets broadband service from MTNL, Airtel and another pvt company. Do we have to deduct Tax on the amount paid to these companies.If, yes under what section?194C or 194J?They are also paying an amount to a IT Company for their oragnisation,s web hoistiing?The server is in USA.Do we need deduct tax on these payments?
Is there any specific circular,notification from the department? Plese clarify?

Thanks in advance.

K.Ganesh

10 April 2008 Dear Ganesh,

Internet charges etc attract TDS @ 194 C i.e. @ 2.266%.

If they are using USA server you will have to pay them royalty @ 15@%.

Hope your doubt is clear.


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