Tds and sec 40a(3)

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Whether payment of telephone charges of amount exceeding Rs. 20000 to BSNL result in a violation of Section 40A(3)? 

Also Whether TDS can be deducted on the same if it exceeds the limit?

Replies (4)

Yes.   on or above 20000 rs. will attract 40A3.

 

But TDS not sure.  Because Bsnl is a govt entity.  Hence, it would be exempted.

TDS is not leviable on telephone expenses.

Cash payment more than Rs.20000 is a violation.

If so BSNL being a govt entity , will Rule 6DD will apply?

yes rule 6DD will apply.

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