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

[Ganeshan Kalyani]

In my view TDS is applicable.

AI Summary

Tax deduction at source applicable on payments for international SIM services provided to travelling employees, requiring withholding from supplier payments. TDS is applicable on payments to a telecom supplier for international SIM cards provided to employees travelling abroad, where the billed amounts (minimum charge plus usage) are paid to the service provider on its bill.