applicability of tds, Income Tax

[sid chakravarthy]

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.

Posts / Replies

[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.