TDS on telephone and electricity bills

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kunal

kunal (Querist)
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03 June 2011 Why TDS is not deducted on telephone and electricity bills even though service tax is paid on these bills?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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03 June 2011 TDS not applicable on both.

kunal

kunal (Querist)
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07 June 2011 Dear sir why it is not applicable?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 Great question! Here’s why TDS is **not** deducted on telephone and electricity bills, even if service tax is paid on them:

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### Why TDS is NOT deducted on Telephone and Electricity bills?

* **Section 194C (Contracts)** and **Section 194J (Professional fees)** — these sections cover TDS on payments for contracts or professional/technical services.

* **Electricity and Telephone charges are treated as utility payments**, not contracts or professional/technical services.

* The **Income Tax Act does not specify any TDS deduction on payments made for electricity or telephone bills**.

* Even though **service tax is charged by the service provider**, TDS is on the *payment for services or contracts*, not on utilities.

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### Summary:

* Service Tax and TDS are different taxes with different rules.
* Service Tax is collected by the service provider and paid to the government.
* TDS is deducted by the payer when paying for certain specified services or contracts.
* Electricity and Telephone bills do not fall under the specified services for TDS deduction under Sections like 194C, 194J, etc.

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So, **no TDS on telephone and electricity bills** is applicable as per Income Tax rules.

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