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

[DR.MARIAPPAN GOVINDARAJAN]

Normally TDS is recoverable only for circuit bills under 194J.

[CABIJENDERKUMAR BANSAL]

Dear Sir,

Would you please elaborate!

[DR.MARIAPPAN GOVINDARAJAN]

No Tax is recovered from source for post paid telephone bills and mobile bills. No TDS for prepaid calls also. Circuit is provided for corporates, colleges, schools for providing internet connections at the lesser rate by making agreements between the telecom operator and the recipient of service. In such cases the recipient of service is liable to deduct tax and remit the same to the exchequer of the Government.

AI Summary

TDS on telecom services: circuit or leased-line charges require withholding, ordinary postpaid or prepaid calls do not.
Ordinary postpaid and prepaid mobile or telephone charges are not subject to TDS; no withholding is made on routine subscriber bills. Conversely, where a telecom operator supplies a dedicated circuit or leased-line style service to a recipient under an agreement, the recipient is liable to deduct tax at source on those circuit charges and remit it to the government.