TDS on Special TV services (Movies) to specified group only.

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Hitesh

459 Points Joined September 2007

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?

Replies (2)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Joined June 2009

Mr.Hitesh

If the services provided to the township of the company amounts to " any work" defined in section 194C (old section and new section) the provisions of section 194C will apply.

In the old section and new sesction

the services of

"broadcasting amd telecasting including production of programmes for such broad casting or telecasting"

are denined in the Explanation to the section.

Please go through section.

Best Wishes

Sathikonda