Table of Contents
Is TDS deductible on telephone services?
What applies to cellular mobile telephone is also applicable in fixed telephone service. Neither service can be regarded as “technical service” for the purpose of section 194J of the Act. 04 July 2009 No Tds is required to be deducted on Telephone Expenses.
What is Section 197 under income tax?
Section 197 of the Income Tax Act, 1961 provides for the facility of NIL deduction of tax at source or at a deduction at a Lower rate of tax.
Is TDS applicable on Internet and phone charges?
No, TDS is not applicable to services using technology — telephone charges, Internet charges, cable TV, leased lines or when it is not under 194J.
Is TDS deductible on Internet services?
TDS is not deductible on services using technology — telephone charges, Internet charges, cable TV, leased lines. Payments for use of standard facilities by the public at large in which some form of technical service is inherent are not covered under section 194J.
Is TDS applicable on telecommunication services?
ITAT states that the interconnection usages charges paid by the appellant to other telecom companies are not covered under ‘fee for technical service’ and such payments are out of the purview of TDS provision of 194J of the Act.
What is fees for technical services?
Fees for Technical Services (FTS) have been defined in Section 9 itself under clause (vii) as any consideration (including lump sum) for rendering of any managerial, technical or professional services including the services of technical or other personnel.
How can I get certificate under section 197?
Process to download TDS Certificate under section 197 – Deductor’s Download
- Log in to TRACES. Log in to TRACES – Enter User Id, Password, TAN or PAN and captcha.
- Navigate to Download 197/206 Certificate.
- Enter Financial Year, Deductee PAN or Request Number.
- Download the certificate.
What is the TDS rate for Internet service provider?
Amendments in TDS Section 194J Due to Finance Bill 2020 TDS will be deducted under Section 194J at rate 2% in case of fees for technical services (not being professional services) and rate reach up to 10% of such sum in any other case.
Is TDS applicable on BSNL bill?
In a relief to private telecom players, the Delhi High Court has ruled that no tax would be deducted at source on payments to be made by private players like Bharti and Vodafone (hitherto Hutch) and others to PSUs, MTNL or BSNL, for getting interconnection.
Is TDS applicable on transportation charges?
According to Section 194C, any payment made to a transporter is subject to TDS deduction on freight charges. The payer must reduce the income tax amount before transferring the fee.
What is the TDS rate for technical services?
2%
Section 194J TDS on Professional or Technical Fees
| Nature of payment | Threshold limit | Rate of tax |
|---|---|---|
| Fees for professional services | Rs. 30,000 | 10% |
| Fees for technical services and payment to call centers | Rs. 30,000 | 2% (for FTS- 10% upto FY 19-20) |
| Remuneration or fees to Director (other than 192) | NIL | 10% |
| Royalty | Rs. 30,000 | 10% |
Which services comes under technical services?
It implies the services rendered by an individual for consultancy, technical or managerial services. Services such as assembly, mining, construction are not considered as technical services as income from the same would come under the head salary of the recipient.
How do I apply for 197?
Step 1: Login to TRACES website with your User ID, Password, PAN for the Taxpayer and the Verification Code. Landing page will be displayed on Screen. Step 2: Go to ”Statements/Forms” tab and click on Request for Form 13 to initiate request.
How do I get my 197 certificate number?
Step 1: Login to TRACES as a Deductor with register User ID and Password. If you have not registered, you can read this guide to get registration procedure. The welcome page will be displayed. Step 2: Click on “Statements/Payments” the second tab and select “197 Certificate Validation”.
How can I reduce my TDS deduction?
For applying lower TDS certificate to the TDS department, following documents are required to be submitted :
- Covering letter disclosing nature of business of the company, reason for company should get lower TDS certificate and also details of the party with their correct address & TAN.
- New Form 13.
How can I get TDS exemption certificate?
Apply to Income tax department/Assessing Officer (AO) in Form 13 for granting the permission. Assessing Officer has to dispose of the applications within a time frame of 30 days from the end of the month in which application.
Is Internet service as technical service?
In the same case the increased use of technology was pointed out in the form of TV, Internet and phones, etc. Moreover, none of these is to be treated as a technical service.
Is TDS applicable on leased line charges?
No TDS on payment towards lease line charges under section 194I.
What is the TDS limit for transporter?
TDS on transporter
| Nature of transport contract | Threshold Limit | Rate of TDS |
|---|---|---|
| Goods Carriage Transport (irrespective of number of vehicles) | If payment under a single contract is up to Rs. 30,000 Or If aggregate payment in a FY does not exceed Rs. 1,00,000 | Nil |