TDS DEDUCTION ON INTERNET SERVICE

[Rajiv Sinha]

Pls explain me latest update on this issue.

Rajiv Sinha

[Grishma Patel]

TDS on internet service is not deducted under section 194J TDS on professional services as human intervantion is not involved in it. As per 194C it can be deducted on safer side as  services are provided by operator and can be taken as work contract.

AI Summary

TDS on internet services: not treated as professional services; may be treated as contract services for deduction.
TDS on internet service is generally not treated as professional services due to lack of significant human intervention; as a safer compliance measure, deduction may be effected under contract/work-contract treatment because services are provided by an operator and can be characterised as contractual services.