Tds on hathway internet charges

Rohidas (Manager Account & Finance) (29 Points)

01 July 2015

Hi,

We are taking Hathway Internet Lease Line Connection for office.

Do we need to deduct TDS on payments? and under with section?

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2 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 01 July 2015

Hi,

This involves judment. As most of the Assessing officers treat lease line as Techinical Services and expect you to deduct @ 10% under 194J.

And there is another side, wherein you would have entered an agreement with Hathway which makes it contract services which may attrach 194C @ 2%.

Out of my corp experiece, out of probability, 95% Corporates deduct TDS @ 10% in order to avoid litigation with TDS officer.

Thanks,

Suri

Vishnu Swaroop (2 Points)
Replied 25 February 2022

Check Tds by checking our website

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