Tds on leased line charges and server co location expenses


This query is : Resolved 

(Querist)
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.


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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 %

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

Thank you so much.

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Guest

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

01 July 2014 It is clear that
.
.
1)No tds applicable on Leased line charges
.
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 (Expert)
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.


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