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Whether TDS to be deducted or not?

B.Rakesh (Chartered Accountant) (73 Points)

25 February 2010

whether TDS has to be deducted while making paymnet to mobile bill to AIRTEL? can any one clarify me....

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(Guest)

Why to deduct TDS?

The type of expese are not covered by any TDS provision.

It is just Telephone expenses.

There is no contract between you and telephone company. You are neither paying rent or commission or interest or any professional charges. Then there is no liability deduct TDS.

1 Like

CA Meeta R (CA) (64 Points)
Replied 25 February 2010

yes, i agree with Mr. Sathyanarayanan - no need to deduct TDS on phone bill.

CA Meeta R (CA) (64 Points)
Replied 25 February 2010

yes, i agree with Mr. Sathyanarayanan - no need to deduct TDS on phone bill.

Suresh (CA Final Student) (177 Points)
Replied 25 February 2010

There is no Contract or profesiional charges or Rental agreement or any other ..only that is a expenses to us..so no need to deduct TDS..

saranraj (CA FINAL) (419 Points)
Replied 25 February 2010

BY THE WAY ITS NOT RIGHT TO SAY THAT TDS NEED NOT BE DEDUCTED AS IT IS AN EXPENSE. EVEN RENT IS AN EXPENSE AND IT COMES UNDER THE PURVIEW OF TDS PROVISIONS. THE ANSWER FOR THE QUESTION HERE IS TELEPHONE BILL PAYMENT ARE NOT COVERED BY TDS PROVISIONS.

Zaid Razvi (Article Assistant) (61 Points)
Replied 25 February 2010

Dear Mr Saranraj,

Im all the discussions above no one has said that as it is an expenses TDS should not be deducted

TDS is deducted only on Expenses

Bidyadhar Buxi (Accountant) (41 Points)
Replied 25 February 2010

Hi,

Telephone expenses coming under Frienge not comes under the provision of TDS. So TDS should not be deducted. the deemed contract between the Service Provider and the service receiver is not of Revenue making to Service receiver out of the same transaction. So its not coming under the TDS provision.

Thanks,

Bidyadhar Buxi

saranraj (CA FINAL) (419 Points)
Replied 25 February 2010

MR. RAZVI

KINDLY READ ALL THE POSTS ABOVE MY REPLY AGAIN AND TRY TO UNDERSTAND WAT PPL ARE SAYING.

R. S A R A N R A J

B.COM, IDA

Arindam Naha (Learner) (28 Points)
Replied 26 February 2010

hello all,

as far my knowledge goes, we are already paying taxes while we are paying for phone bills in form of service tax. so i dont think we pay taxes for the same service twice..!!

SUBHOJIT SRIVASTAVA (ACCOUNTANT) (21 Points)
Replied 26 February 2010

It is not correct to say that telephone bill will not be covered under TDS. We pay monthly fixed rent of RS 250/- for BSNL Service Provider on our landline bill. As a fact it also come under the purview of Rent Expense which is under TDS and therefore TDS shall be deducted. Moreover, we pay service tax and other charges while paying bill. TDS deduction on telephone expense will reduce the burden of tax payer and the service provider will provide benefit in the form of service coverage to all the citizens of the country.

A threshold limit can be set for the telephone bill for corporates and individuals so that TDS can be deducted on the amount which are exorbitant in relation to the income of the residents.

I wish the matter must be of immense importance to discuss.

Subhojit Srivastava

Computer Faculty,ICA

(Guest)

Dear Subhojit Srivastava,

Sec 194 I charges assessee to deduct TDS on payment of rent.

It specifies the type of rent where TDS need to be deducted.

TDS at the rate of 10% for Land and builidng and land appurtenent there to and 2% for use of plant or machinery or equipment.

Telephone rent is does not come under the section. It is not rent payable for land or building or machinery or plant or equipment.

So i am sure there is no need to deduct TDS.

PRATIK P MEHTA (Final Student,articles) (125 Points)
Replied 26 February 2010

T DS IS not a tax on service mr arindam pls rectify ur answer we pay diff kinds of taxes on same services

Rama Krishna (Accounts Executive) (70 Points)
Replied 26 February 2010

The amount paid to Airtel being telephone expenditure is not liable for TDS. Hence no need to deduct TDS.

Arindam Naha (Learner) (28 Points)
Replied 27 February 2010

agree with Satyanarayanan..

@ Pratik..when did i say that??plz go thru my post once again..i may be wrong with the second line regarding payment of taxes more than once on the same service..but can u plz give me an example where we stand liable for the same service,etc. twice; just to help me increase my knowledge???