TDS on Telephone Expenses

[CABIJENDERKUMAR BANSAL]

Dear All,

Greetings of the day!

Please share your vies regarding-

1)Eligibility of TDS deduction on Telephone expenses.

2) TDS deduction on Internet services; whether to be deducted u/s 194 C or 194J.

Thanks in anticipation of doing needful.

Regards!

Shrey Khanna

M.+91-9999124788

AI Summary

Clarification on TDS applicability: Section 194J covers circuit bills; no TDS for phone bills; internet services need TDS. A query was raised regarding the eligibility of Tax Deducted at Source (TDS) on telephone and internet expenses, specifically whether TDS should be deducted under section 194C or 194J of the Income Tax Act. It was clarified that TDS is typically applicable only for circuit bills under section 194J. No TDS is required for postpaid or prepaid telephone bills. However, for internet services provided to corporates or institutions through agreements with telecom operators, the recipient is liable to deduct and remit TDS to the government.