TDS on Mobile Bills

[Ritesh Agarwala]

Dear Members,

A client being Private Limited Company using mobile services of Airtel and the average monthly bill is of Rs. 50000/-. The Airtel services (SIM Cards) are used for tracking vehicles. The SIM Cards are provided by Airtel under an agreement and no calls can be made or received. It is used only for tracking for the approximately 500 devices are installed. My query is do we need to deduct TDS for the payments that is made to Airtel and under which section.

--
CA. Ritesh Agarwala

[Bikash Bogi]

Dear Ritesh 

Prima Facie this case falls under the purview of TDS and TDS should be deducted u/s 194J being technical services. Exact nature of service can be explored after careful reading of the agreement. 

--
CA. Ritesh Agarwala

--
forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.
 
To join and/or to post to this group send email: foru...@googlegroups.com
To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com
For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net
 
---
You received this message because you are subscribed to the Google Groups "forum4ca" group.
To unsubscribe from this group and stop receiving emails from it, send an email to forum4ca+u...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
 
 

--

Thanks & Regards 

Bikash Bogi  (Partner) 

+91-9930934403

 

www.sbrca.in, http://bikashbogi.blogspot.com/

SBR & CO. Chartered Accountants 

402, 4th Floor I Autumn Grove I  Lokhandwala Township I Kandivli (E) I Mumbai 400101 I Maharashtra

+022 - 29661585 I mum...@sbrca.in 

Branch Office:

1020, Ground Floor I Aambaji Market  I Ring Road I  Surat 395002 I Gujarat  

+0261 - 301 6163 I su...@sbrca.in  

[Kalidas Ramaswami]

The following decisions support the view that no TDS shall lie u/s 194J  against receipt of telephone services or against interconnect/port access serices.
Skycell communications ltd vs Deputy CIT(251 ITR 53)(Madras)
CIT Vs Bharat Cellular ltd (175 Taxman 573(Delhi).
The above decisions may be examined to see whether they are applicable in the given facts in the query.
regards
kalidas  
 

---

Date: Sun, 10 Feb 2013 18:56:37 +0530
Subject: Re: [CA RUNGTA PD] TDS on Mobile Bills
From: bikas...@gmail.com
To: foru...@googlegroups.com

[Anand Jain]

Dear All,

 

After the amendment in section 9(1)(vi) by Finance Act, 2012, these payments would be regarded as Royalty and TDS needs to be deducted u/s 194 J

 

Thanks

Anand Jain

[Ajit Kumar & Co.]

Explanation (ba) of section 194J says royalty shall have the same meanings as in exaplanations 2 to clause (vi) of section 9(1).Finance act 2012 has not amended explanation 2 to clause vi of section 9(1). It has only inserted explanation 4,5,6.In my view for the purpose of section 194J only explanation 2 is applicable. Therefor no TDS is required ro be deducted. But issue is disputed so long as section 194J is not ammended. CBDT should clarifiy the matter.

 

Thanks

CA, Subhash Banka