applicability of tds

[Guest]

dear sir,

our municipal corporation is paying Rs 63272=00 including Service Tax for 229 days from 23.08.2013 to 31.03.2014 towards tariff for 2MBPS internet leased line to BSNL. I would like to know whether this amount attracts TDS under Income Tax Act, 1961.

regards,

chakravarthy.

[rinki todi]

Dear Sir,

Section 194C and Section 194J are not applicable on the lease rental charges to BSNL as per the ruling in case of Hutcison Telecom East Ltd(Supra). However tax may be deducted under section 194I if agreement so provides.

AI Summary

Municipal corporation's payment for BSNL internet leased line may require TDS deduction under Section 194I, not 194C or 194J. A municipal corporation is paying Rs 63,272, including Service Tax, for a 2MBPS internet leased line from BSNL for 229 days. The query is whether this payment attracts TDS under the Income Tax Act, 1961. The response clarifies that Sections 194C and 194J are not applicable to these lease rental charges, referencing a ruling involving Hutchison Telecom East Ltd. However, tax deduction may be required under Section 194I if stipulated in the agreement.