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Tds deduction

Vignesh Krishnan (Article Assistant) (106 Points)

12 February 2015

Hi all I have another Query. Whether TDS has to be deducted on Subscripttion of Internet Connection from Internet Service provider. If So Under Which Section it falls? Please Reply asap as I am in Internall Audit of a concern

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5 Replies

Puneet Mittal (Sr. Officer Accounts) (212 Points)
Replied 12 February 2015

TDS will be deduct under section 194J becuase technical services are coverd by above section.

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shubham shukla (ACCOUNTS MANAGER) (173 Points)
Replied 12 February 2015

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.).

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Ramanuj (Accountant.) (834 Points)
Replied 12 February 2015

Dear all

TDS is not applicable of Subscripation on internet connecton from internet service provider.

Thanks & regards

Ramanuj

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Vishal Goel (Chartered Accountant) (1693 Points)
Replied 12 February 2015

Hello, agree with shubham
	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.).