Dear all,
With the entrance of core competition in all areas the problems have also diversified and enlarged its scope.
Request you to kindly assist me with one such issue on TDS, mention herebelow:
There is a Company having created its own township and residential colony for its employees.
The Company has entered into the subscripttion for a special Movie channel to be telecasted only for its 500 residential houses. This channel is specially for telecasting Old or Classic Hindi movies and the telecast is limited to these 500 houses only.
The annual subscripttion charges for this services proviveded amounts to Rs.125,000 + applicable Service tax charges.
The company has a policy of issuing work orders / entering into contracts and the company has complied with all such approvals and activities it need to comply with.
QUESTION is:
Q1) Is this transaction subject to Tax Deduction at Source (TDS)?
Q2) If it is, then under wht section and on what grounds?
CAclubindia
