Tds on purchase of login id

TDS 647 views 3 replies

one of our client purchase login id and password from a company for making international call through this portal.the party charged Fixed charge of Rs .36000+calling charges  and on net total amount they charge service tax (as that company registered in service tax as telecommunication service head.)

i am confused whether the tds is applicable under the head contractor i.e 194c or under section 194j

Kindly suggest

Replies (3)

I think it should be 194J.

Thanks,

As per section 194J  read with section 9 of Income Tax Act, 1961, said transaction comes under the definition of Royality.

Therefore, TDS will be applicable under 194J of said Act. 

it should be come u/s 194J


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