Provisions of TDS will not apply in case of payments made for usage of telephone and internet connection. U may also refer Madras High Court Judgement in case of Skycell Communications Ltd. [251 ITR 53]
do we need to deduct tds if we have made a contract of internet usage with a company and the bill amount is the same every month???
what is needed to be done if it is call centre???
Anil a very good question indeed. There is strong logic behind deduction of TDS. We need to understand the difference between allowance and re-imbursement. If it is an allowance ie to say that the contractor/vendor's margin is included it shall be subject to TDS u/s 194C. If it is in the nature of pure re-imbursement ie. payment on the basis of actuals then no TDS shall be deducted.
We are a public limited company and kindly let us know if there is any liability for TDS on usage of internet or on any rental charges charged by telephone / communication provider.
Hi to all,
there r two type of service provider for service rendered in connecrion with telephone & Brodband services.
1st who hv licence to operate for such services like ; airtel, idea, Mtnl, Bsnl etc in these case TDS liability not comes for service receiver so far as section 194 is conceren.
2nd is who has provide technical support for that services as well as brodband services like ; Tulip which is essential for BPOs in this case a contract is also write down by company for that. in this case TDS is required .
HI,
TELEPHONE AND INTERNET EXPENSES ARE NOT LIABLE FOR TDS BUT FBT. YOU CAN"T DEDUCTTHE TDS AMOUNTON ABOVE SAID EXPENSES IN FURTHER YOU HAVE TO PAY FBT ON THE ABOVE EXPENES IF THESE EXPENSE ARE INCURRED IN A COMPANY REGD. UNDER COMPANIES ACT 1956
THANK YOU