tds on phone rental

Section194I of the Income Tax Act has been amended by the Taxation Laws (Amendment) Act, 2006 wherein, with effect from 13.07.2006, payment of rent under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any equipment, furniture or fittings has also been included under this section and necessary tax has to be deducted where the aggregate of rent paid or likely to be paid during the financial year exceeds Rs.1,20,000.

for use of phones isdn pri plan or cell phone usage if a company pays more than 1,20,000/- (collectively in a year) as rental charges does it attract the new amended provision. In such cases 20% tds is not too high to deduct

s.ramesh
Replies (7)
Yes,
TDS should be deducted, becouse telephone etc. will include in equipments of the Company

Ravi
Yes,
TDS should be deducted, becouse telephone etc. will include in equipments of the Company

Ravi
[quote=s.ramesh (Guest)]Section194I of the Income Tax Act has been amended by the Taxation Laws (Amendment) Act, 2006 wherein, with effect from 13.07.2006, payment of rent under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any equipment, furniture or fittings has also been included under this section and necessary tax has to be deducted where the aggregate of rent paid or likely to be paid during the financial year exceeds Rs.1,20,000.

for use of phones isdn pri plan or cell phone usage if a company pays more than 1,20,000/- (collectively in a year) as rental charges does it attract the new amended provision. In such cases 20% tds is not too high to deduct

s.ramesh [/quote]

mr badarinath

what's your view please

s.ramesh
i hv confirmed with my friend in Tax dept. of a Telephone service provider, his openion is that TDS is not applicable
dear som

i also agree with ur freind's view but the point is when the telephone bill says it is rental and exceeds presecribed limit of 1,20,000/- p.m. how to take different view, even though in reality the rental is nothing but plan charges which is being set off aginst the calls made.

s.ramesh

IT act demands us to pay TDS... so its better to walk with Act...

so as to leave no room for differences :)

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