TDS on telephone bills

This query is : Resolved

S.RAVICHANDRAN (Querist)
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05 October 2007 If we fail to deduct TDS for the monthly telephone bills and pay TDS within the financial year, whether the telephone expenses will be allowed as business expenditure for that financial year ?

Please clarify.

Ravikumar.G

Ravikumar.G (Expert)
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05 October 2007 Your statement is correct. if your telephone biils are about to Pvt concern and same tds not deducted which is not an allowable expenditure and it will be allowable in the year of payment of Tds.

R.V.RAO

R.V.RAO (Expert)
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05 October 2007 DEAR SRI SRC,
AS PER OUR EXP. AND ALSO DISCUSSIONS WITH C.As AND TAX PRACTITIONERS,THERE IS NO TDS ON TEL. BILLS.( BSNL,RELIANCE,AIRTEL LAND LINE OR MOBILE, OR LEASED LINES)
MAY I SUGGEST TO KINDLY CHECK UP THE ISSUE ONCE AGAIN AT YOUR END?
ALSO PL. ENLIGHTEN US THROUGH OUR CACLUB FORUM IF OUR UNDERSTANDING ON THE ISSUE NEEDS TO BE CHANGED.
UNDER SEC 40(a) - DISALLOWABILITY IS STIPULATED of exp INCURRED UNDER FOLLOWING SEC.WHERE TDS IS APPLICABLE SEC193,194A,,194H,194J,194C,194I- IF TDS EITHER NOT DEDUCTED OR NOT DEPOSITED after collection (AS AMENDED WEF ASST. YEAR 2005-06) .
R.V.RAO

Ravikumar.G

Ravikumar.G (Expert)
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05 October 2007 i have mentioned above Pvt Concern means not BSNL, Reliance, Airtel etc., some of companies arrange their telephone services and conference facilities thro' pvt telephone services for which sec 194c will be applicable. For that TDS to be deducted.