TDS on internet charges paid by the company ?

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  1. Rohan Kakkar

    Rohan Kakkar New Member

    Is tds to be deducted on payment made to an internet service provider ?
    If yes under which section it is liable for & why ?
     
  2. Saurabh Z

    Saurabh Z Member

    Please give detail how much amount paid and under an agreement for a company as a whole?
     
  3. Rohan Kakkar

    Rohan Kakkar New Member

    Amount is 32000 & yes as an agreement for a company as a whole.
     
  4. Saurabh Z

    Saurabh Z Member

    TDS is not applicable on internet charges paid by company.....only service tax is applicable
     
  5. Rohan Kakkar

    Rohan Kakkar New Member

    32000 amt. is for 3 months & the company is deducting TDS @ 10% u/s 194J & the ISP is not even raising any objection.
    Please let me know from where can I clarify my doubt regarding this as I need to raise this point in my report in Internal Audit.
     
  6. Saurabh Z

    Saurabh Z Member

    As per section 194J, the TDS is applicable on fees for professional or technical services. It does not cover the charges paid by any subscriber, i.e., the subscriber may be Individual, Company or Firm.

    In brief, the TDS is not applicable on Internet Charges.

    u can report the same if they asked for clarification just give some reference to decided caselaws

    Thank You
     
  7. Saurabh Z

    Saurabh Z Member

    for your reference
    Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.)
     
  8. Rohan Kakkar

    Rohan Kakkar New Member

    Ty:)
     
  9. Does that mean that TDS is also not applicable on Telephone Charges as you are a subscriber in that case as well
     
  10. Saurabh Z

    Saurabh Z Member

    Yes not applicable even on telephone charges
     
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