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Comments
Uday kumar
26-May-2018 , 07:54:34 pmIn my point of view, Section 194C will come into picture. If one time payment exceed 30000 and payee is company then TDS should be deducted @ 2%.
YUGENDRA NAGPURE
28-May-2018 , 11:32:42 amAs per section 194J, the TDS (Tax Deduction at Source) is applicable on fees for professional or technical services. It does not cover the charges paid by the average consumer or householder for utilizing the products of modern technology, such as the use of the cable TV, the telephone fixed or mobile, the internet, the railway, the automobile, consumption of electrical energy, the aeroplane, etc. Such facilities which when used by individuals are not considered as technical service. It applies to any subscriber, i.e., the subscriber may be Individual, Company or Firm. In brief, the TDS is not applicable on Internet Charges, Telephone Charges, Cable TV, etc. It has also been held in the case of Skycell Communications Ltd. v. Deputy CIT[2001] 251 ITR 53 (Mad.).
YUGENDRA NAGPURE
28-May-2018 , 11:35:11 amAnother View: “The internet doesn’t fall under the IT (Information Technology) or Technical Consultancy as it includes only software’s and Training Etc. It won’t come under 194C because there is no specific contract. So, there is no need to deduct TDS for the Internet under any Section.†But as leased line is not in the nature of fees for technical services, the TDS is not applicable on Leased lines.
Vasudev Matta
04-Jun-2018 , 06:14:27 pmTds is not applicable on payments made to Govt Company