Net Charges

If payment of installationcharges is more than Rs 20000  in sinle payment and rs 50000 in agg. than it is compulsory to deduct tds under setion 194C.

Rate of deduction 1% in case of individual or huf

2% in any other case.

Dear Pankaj,

TDS is not deductible on services using technology -- telephone charges, Internet charges, cable TV, leased lines. Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).

Other payments outside the purview of TDS are
(a) Statutory payments -- fees, cess, taxes,
(b) Clearing house charges, stock exchange charges, demat charges,
(c) Subscripttion to databases.

regards,

ratan