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Tds on sms bulk credit ?

TDS / TCS 4392 views 7 replies

  A company is providing Invoice of Bulk SMS Credits and charging Service Tax @ 12.36 %.

  My Query is that TDS is applicable on the payment. If yes, under which section ?

 

  Thanks

  Diwakar Mishra

 

Replies (7)

check if the company has signed any contract with the service provider. if yes then TDS to be deducted under 194C

Hi Diwakar.

Can u explain me what is Bulk SMS credit and the exact nature of this transaction....????

Regards

 

No tds is required to be deducted as there is sale of sms........same as by the mobile company...any clarification welcome

Thanks karandeep ji

Dear Karandeep ji,

On 'sale' of sms, service provider cannot charge service tax.

We have to analyse the correct nature of service, it may be covered by either 194C or 194J as a technical service.

agree with Jamsheedji

In my view, bulk sms credits is a sale and company should not charge service tax on this sale.... Please guide.


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