Applicability of TDS on Telephone Services

[Ametek Instruments India Private Limited]

Dear Friends,

When our Employees travel outside India, we provide them with a International SIM card provided by Matrix. The SIM card is country specific. The advantage is that there will not be any International roaming charges and also get some free calls to India. The charges billed to us are Minimum charge+ usage charges as applicable.

We pay directly to Matrix based on the Bill raised by them.

Is TDS applicable on these transactions/ Payment?

Thanks

Ajith

AI Summary

TDS Applicability Questioned for Payments on International SIM Cards Provided to Employees Traveling Abroad A company inquires about the applicability of Tax Deducted at Source (TDS) on payments made for international SIM cards provided to employees traveling abroad. The SIM cards, supplied by Matrix, are country-specific and offer benefits like no international roaming charges. The company pays Matrix based on the billed charges. A respondent opines that TDS is applicable to these transactions.