One company is
providing internet services . Their bill shows internet lease rental
and maintenance charges. And they r chargin service tax on that also.
So the question is will it come under 194c or 194I for the purpose of TDS.?
T.D.S is applicable under section 194C . i.e., payment to contractor. Sec 194I is applicable only in case of lease rent or rent payable on building, machinery, equipment or land. No doubt the company contract is in name of lease payment but one should look at its nature of contract. So, sec. 194C is applicable.