TDS on Lease line hire charges for network connection

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Anand Solanki (Querist)
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10 October 2007 Hello,
A company is paying rental charges for lease line dedicated to connect computers all over India and for using internet facility. It is like virtual private network.
Will TDS on rent be applicable under the new rent definition (rent includes equipment)

Ravikumar.G

Ravikumar.G (Expert)
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10 October 2007 Telephone and Lease line services are not coming under the TDS category. There is no specific provision available for Leaseline and telephone services.

Anand Solanki

Anand Solanki (Querist)
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10 October 2007 but will lease be covered under office equipment.

Ravikumar.G

Ravikumar.G (Expert)
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10 October 2007 How much is the cost ? usually they will collect deposit and installation charges and they will collect serivecharges with service tax. Usually they will provide some of the equipments as complementary. You please go thro that agreement or description and let me also knnow the impact.

Anand Solanki

Anand Solanki (Querist)
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10 October 2007 cost is around 10 lacs per annum.

Ravikumar.G

Ravikumar.G (Expert)
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10 October 2007 We cannot amortise the same. Let me also check with that.

Ravikumar.G

Ravikumar.G (Expert)
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10 October 2007 That cost is service cost or equipment cost please ensure.

Anand Solanki

Anand Solanki (Querist)
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10 October 2007 If it service cost then whether it will come under TDS on technical services under 194J.

If it is equipment cost (hire charges every year), then whether TDS on rent under 194I is applicable?

Ravikumar.G

Ravikumar.G (Expert)
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10 October 2007 BSNL,RELIANCE,AIRTEL LAND LINE OR MOBILE, OR LEASED LINES THOSE ARE NOT COME UNDER TDS NET. I WILL TRY TO GET THE NOTIFICATION OR CIRCULAR AS EARLIEST.