05 February 2012
Pl let me know why TDS on Mobile Bills ( minimum fixed Rent with some call value free) / Broadband plans (internet plans with free data download) which are in excess of annual threshold limits under contractor / rent category be deducted. Is there any exemption circular or just general ommission on payers / service availers part ?
Also, what happens that many numbers are availed by a corporate and rentals become in excess to threshold limit...
07 February 2012
Fixed rent on Phone/Mobile does not qualify for rent either on land or building, plant & machinery, equipment or furniture and fittings per cotents under Sec. 194I, even that does not qualify being a technical service under Sec.194J, case law Skycell Communications Ltd. vs. Dy. CIT (Mad.) (2001) 251 ITR 53 (Mad.. Therefore, no need to do TDS in the instant cited case.
CAclubindia
