TDS on Internet Charges

Quick Summary
A discussion on whether TDS applies to internet and telecom charges paid to providers like Reliance and VSNL. Most experts cited the Skycell Communications case, stating standard internet and telecom services do not attract TDS under Section 194J or 194C.

Originally posted by :kalpana hegde
" can anybody tell me what is sercice tax exemption limit "

hi kalpana. the assesse will have to take registration number if his gross receipts exceeds Rs.900000 and should charge service tax from his client if his gross receipts exceeds Rs.1000000. In the very first year if his gross receipt exceeds Rs.1000000 then he is liable to pay service tax  on exceeds amount only not on whole amount
 

[2001] 119 TAXMAN 496 (MAD.) 
 
Case Name : Skycell Communications Ltd. VS. Deputy Commissioner of Income-tax
Court :  MAD.
Decision Date :23/02/2001
Case No.: Appeal No. 9946 of 1998, 9947 of 1998
Judges :  R. Jayasimha Babu
Counsels :  V. Ramachandran, K. Mani for the Appellant.Mrs. Chitra Venkataraman for the Respondent.
 
Corresponding Citation :  [2001] 170 CTR 238 (MAD.) / [2001] 251 ITR 53 (MAD.)
 
 
Section 194J, read with section 9(1)(vii), Explanation 2, of the Income-tax Act, 1961 - Deduction of tax at source - Fees for professional or technical services - Whether payments made to person engaged in business of providing cellular mobile telephone facility by subscribers, being firms and companies, are covered by definition of ‘fees for technical services’ in section 194J, read with Explanation 2 to section 9(1)(vii) and whether tax is required to be deducted at source on such payments by subscribers - Held, no 

Hi,

Pls. clarify if the website registration fee (Online Acess) will attract the TDS on not??  If yes means it come under which  section???

 

Thanks & Regards

Ramesh 

TDS is not applicable for internet charges. Only If its a  leased line TDS is applicable U/s 194I. Otherwise TDS is not appliacble .

is tds to be deducted on internet bills? under which section it is deducted?please explain it

TDS Applicability on GVPN Port Charges paid to TATA Communication Ltd

and Internet charges paid to Reliance

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