Applicability of TDS under section 194 J

[PAWAN KUMAR SHARMA]

TDS on Mobile and Telephone Payments

Dear All,   It has come to notice that persuant to change in definition of Royality as per Finance Act 2012, the payment of Mobile Bills, Broadband Charges, internet charges etc and Telephone Payments shall be after deduction TDS under section 194J.   Need you views on the same.

[Surender Gupta]

 

This issue need in depth study of the provisions as amended. Indeed amendment has far reaching consequences.

[Surender Gupta]

 

But as per common understanding, Mobile Bills, Broadband Charges, internet charges etc are not paid for use of equipment but these services are used / availed using the equipment as medium. The amount paid of services may not be held as used for equipment.

AI Summary

Clarification sought on TDS applicability under Section 194J for mobile, internet, and telephone payments post-Finance Act 2012. A query was raised regarding the applicability of Tax Deducted at Source (TDS) under section 194J of the Income Tax Act, following the Finance Act 2012's revision of the definition of royalty. The concern was whether payments for mobile bills, broadband, internet charges, and telephone payments should be subject to TDS. A respondent noted that this issue requires a detailed examination of the amended provisions, suggesting that these payments might not be considered as payments for the use of equipment, but rather for services availed through the equipment.