Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

TDS on Telephone charges and Internet charges

CRR RR (42 Points)

15 January 2025

Hi Sir/Madam

Could some one please advise is it require to deduct TDS towards Telephone charges and Internet charges and the rate applicable and the tds section applicable

Thanks

Reply
Follow
Share

2 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8545 Points)
Replied 15 January 2025

To determine if TDS (Tax Deducted at Source) is required for telephone charges and internet charges, let's break it down: TDS Applicability As per the Income Tax Act, 1961, TDS is applicable on certain payments, including: 1. _Telephone charges_: TDS is applicable on telephone charges under Section 194J of the Income Tax Act, 1961. 2. _Internet charges_: TDS is applicable on internet charges under Section 194J of the Income Tax Act, 1961. TDS Rate The TDS rate applicable for telephone charges and internet charges is: 1. _10% TDS_: For payments exceeding ₹30,000 in a financial year (Section 194J). TDS Section Applicable The TDS section applicable for telephone charges and internet charges is: 1. _Section 194J_: TDS on fees for professional or technical services, including telephone and internet charges. Exemptions There are some exemptions: 1. _Payments to government departments_: TDS is not applicable on payments made to government departments. 2. _Payments to statutory corporations_: TDS is not applicable on payments made to statutory corporations. Threshold Limit There is a threshold limit: 1. _₹30,000_: TDS is applicable only if the payment exceeds ₹30,000 in a financial year. To illustrate: - _Telephone bill_: ₹25,000 per month (₹3,00,000 per year) - _TDS applicable_: Yes, as the payment exceeds ₹30,000 in a financial year - _TDS rate_: 10% of ₹

sabyasachi mukherjee (27837 Points)
Replied 16 January 2025

Tds on telephone charges not applicable.

CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Meet our PRO Members

Neha

PRO MEMBER

J K Misra

PRO MEMBER

Amogh Gokhale

PRO MEMBER

medhansh j

PRO MEMBER

Tia Blair

PRO MEMBER

Subscribe to CAclubIndia Pro

Trending Online Classes

GST Demands and Recoveries: Navigating Through the Tides

CA Nipun Arora

Enroll Now

17 July 2025
Certification Course on Practical Filing of Income Tax Returns

CA Pratibha Goyal

Enroll Now

09 July 2025
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools

CA Deepak Gupta

Enroll Now

15 July 2025

view all classess

Follow us

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings