Tds on internet leased lines

6400 views
User Avatar

Accountant
23 Points Posted on 20 October 2017

Dear Members,

I understand this topic has been covered earlier, however I am unable to get a cleaar cut answer and a proper direction.

Does a pvt ltd company have to cut TDS @ 10% for internet leased lines provided by Airtel/Vodafone/Reliance?

The contract is for 1 year payments are made monthly basis not lumsum.

Thank you.

0 Reply Share Follow
On 20 October 2017 at 16:02 Report
Replies (5)
Quick Summary
Discussion on TDS applicability for internet leased line charges paid to telecom providers like Airtel, Vodafone, or Reliance. Opinions differ between no TDS, Section 194C at 2 percent as contract payments, or Section 194J at 10 percent for technical services

User Avatar

Student CA IPC / IPCC
29 Points Posted on 20 October 2017
Yes, the tds is to be deducted @ 10% as these services are covered under section 194J instead of 194C. There are many case laws. You can also refer those.
Reply
On 20 October 2017 at 16:41
User Avatar

Accountant
23 Points Posted on 20 October 2017
Thanks Deepak. I have referred to different cases but not able to get a proper direction. Some cases say not to be deducted where as some say deduct.
Reply
On 20 October 2017 at 16:46
User Avatar

Student CA Articleship
848 Points Posted on 20 October 2017

Deduct TDS @ 2% under section 194C if annual payments exceed 100000 Rs, because this is a contract of lease

194J is applicable if it is a professional or technical service

In your case 194C is applicable

Reply
On 20 October 2017 at 17:25
User Avatar

Profession Business
28246 Points Posted on 17 October 2019
194J IS FOR PROFESSIONAL SERVICES.
NO TDS TO BE DEDUCTED ON INTERNET CHARGES .
194J IS APPLICABLE FOR PROFESSIONAL SERVICES.
DEEPAK U ARE NOT CORRECT.
CHECK SEC 194 J ACCORDINGLY.
ANY DEVIATION PLS LET ME KNOW.
TDS U/ SEC 194C IS NOT APPLICABLE.
ITS NOT A LABOUR CONTRACTOR OR SUBCONTRACTOR.
Reply
On 17 October 2019 at 12:48
User Avatar

BUSINESS DEVELOPMENT MANAGER
1697 Points Posted on 31 October 2019

 the assessee was liable to deduct tax at source @  2% u/s 194C from the payment instead of 10% u/s 194J

Reply
On 31 October 2019 at 16:17

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. In ITR 4 u/s 44ADA what amount we shoud show under
  2. Salary expenses how to treat
  3. Pos related issue
  4. Gift of unlisted shares to friend upon marriage
  5. Utilising Section 54(F) for capital gains reinvest
  6. GST ewaybill closure and Bill to ship to GST numbe
  7. TDS ON PARNTER INTEREST
  8. Share important chapters of ca inter costing
  9. Free CA Foundation Study Material - PYQs with Sugg
  10. INCOME TAX

More recent discussions | Post

Related Topics :

Loading

Latest Job Openings

View all
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Company
22 July 2026
Senior Chartered Accountant

SKSS

Patna

CA

View Details
Company
16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT , CA SemiQualifie

Vakilsearch.com

Chennai

CA Inter

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details