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Tds on internet leased lines

TDS / TCS 6143 views 5 replies

Raju

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.

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

deepak

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.

Raju

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.

chamarthi venkatesh

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

sabyasachi mukherjee

Profession Business

28207 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.