Tds on telephone fixed plan rentals

This query is : Resolved

Pankaj K Gupta (Querist)
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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...

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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06 February 2012 There is no need to deduvt TDs on payment for Mobile Phone.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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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.

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