applicability of tds

[Asked by 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.

AI Summary

TDS on lease rentals may not be contract or professional withholding but can apply as rent if agreement stipulates deduction.
Withholding analysis depends on the payment's contractual character: payments for an internet leased line characterised as lease rental are not caught by provisions aimed at contract work or professional fees, but tax may be deductible as rent if the agreement treats the payment as lease income and requires deduction.