Tds on leased line charges and server co location expenses

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Nishana (Querist)
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01 July 2014 Hi!

Our organization is a cloud based company and we are keeping our servers with a data centre. We are paying leased line charges and server co- location charges to client.

Can any one please confirm, whether TDS will get attracted on leased line and Server Co-location expenses. If yes, under which section, it should be deducted.

Thanks in advance for your help.

Guest

Guest (Expert)

01 July 2014 if u r dealing in goods no tds applicable

but as above leased line charges are for services and tds is applicable on services...

tds should be there in 194 C @ 1% or 2 %

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Nishana

Nishana (Querist)
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01 July 2014 Ours is IT company.

Thank you so much.

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Guest

Guest (Expert)

01 July 2014 ok dear.. so you also received services then u must deduct tds

Ganeshbabu K

Ganeshbabu K (Expert)
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01 July 2014 It is clear that
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1)No tds applicable on Leased line charges
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reference : Skycell communications limited Vs DCIT
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2)Explaining how service of Co-location hapens
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if it is service rendered by application of technical people 194J applicable

Rupesh Jain

Rupesh Jain (Expert)
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01 July 2014 tds not applicable on leased line. but charge of server co location if provide any service like technical or repair then tds u/s 194 J will applicable.