Tds on leased lines

This query is : Resolved 

12 August 2013 Dear Experts,

My client is a Public Limited unlisted company and uses Airtel Leased Lines for its BPO operations. So do we need to deduct TDS on these leased line payments, if yes then under which section?

12 August 2013 Please refer this judgement.
.
Skycell Communications Ltd. v. Deputy CIT[2001]251 ITR 53 (Mad.).

12 August 2013 TDS not applicable on payment to leased line charges,, please refer to case law suggested by paras bafna sir

13 August 2013 Dear Sir,

In the above case Law, no tds will be charged u/s 194J but what about 194I Rent, Can TDS be deducted on the lease line payment u/s 194I, please clarify?

13 August 2013 In the case of Skycell communicaions Ltd it is held that payments made for services using technology like telephone,internet is out side of purview of TDS.

So in my opinion TDS not applicable

13 August 2013 Lease line and Telephone line or internet broadband wire line, all are to be similarly
treated.
..
Leased Line Word is confusing ???
Every telephone line is leased line as we pay rent for that and ownership belongs to the company.


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