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TMI BlogQuery Regarding TDS on Office Utility ExpensesX X X X Extracts X X X X X X X X Extracts X X X X ..... Query Regarding TDS on Office Utility Expenses X X X X Extracts X X X X X X X X Extracts X X X X ..... for the office * Postpaid mobile bills used for office purposes If TDS needs to be deducted then under which section should TDS be deducted Regards, S Ram Reply By YAGAY andSUN: The Reply: Great question - and it's a practical one many businesses come across during day-to-day expense management. Here's a clear breakdown regarding TDS applicability on these office utility expenses: &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 128269; 1. Internet Charges (for office use) * TDS Applicability: ✅ Yes, if paid to a non-telecom service provider (e.g., leased line from IT company or service bundled with support/maintenance). * Section: 194J - Technical Services * Threshold: Rs.30,000 per annum (per party) 💡 However, if internet charges are paid to a telecom operator (like Airtel, Jio, BSNL, etc.) as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a regular bill, then: * Treated as a standard service, not liable for TDS under 194J (as clarified by CBDT Circular No. 21/2017). 🔍 2. Landline Telephone Bills (for office use) * TDS Applicability: ❌ Not applicable * Reason: Treated as a service rendered by a telecom company, considered as a contract of service, not "technical service" under Section 194J. 🔍 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Postpaid Mobile Bills (used for official purposes) * TDS Applicability: ❌ Not applicable (in most cases) * Reason: Same as landline - if the bills are in the company's name and are regular telecom services, TDS is not deductible. ✅ However, if there is a retainer contract or consolidated service agreement (e.g., mobile + internet + IT maintenance), then TDS under Section 194 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J or 194C may apply, based on the nature of the contract. 📌 Summary Table Expense Type TDS Required? Section Conditions Internet (from IT vendor) Yes 194J If bundled with technical support/leased line Internet (from telecom co.) No - Regular telecom bill Landline (telecom co.) No - Standard office utility Postpaid Mobile No - If billed by telecom co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany and used for official purposes
🧾 Note on Compliance
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Ensure that invoices are in the company's name and not reimbursed to employees - otherwise, TDS implications may differ.
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Keep track of the vendor type: if it's an IT service provider or aggregator, TDS may apply under 194J.
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