Tds on lease line from tata tele services

This query is : Resolved 

11 June 2013 Sir
should we deduct tds on payments towards lease line of internet taken from tata teleservices.if yes in what rate,
we are a private ltd company.
Regards
Prabin


11 June 2013 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.)

***ON A SAFER SIDE one cannot ignore the mandate of Section 194-I, which calls upon a user to deduct tax at source on payment of rent for use of equipments and machinery.

Please find below link may be useful.

https://www.caclubindia.com/experts/tds-on-leased-line-for-internet-expenses-to-reliance-comm--1323934.asp

Thanks & regards
Ganeshbabu K


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