we are a private ltd company in service sector providing technical consultancy, my problem is that we have to pay 1,00,000/- P.M. to Airtel as rent for using their underground wire to connect our Three branch office at different cities via common server. how to deduct TDS under which head?
This is payment and this will be under indirect expenses. Now, as accountant, your one more duty that is to deduct TDS from total payment of rent to Airtal and deposit it to govt. account. For this, you must know the nature of payment because all the sections of TDS in Income Tax Law are according to nature of payment. In above case, Rent of plant, machinery or equipment section will be apply for deducting TDS because Airtel is providing you the service of their equipment. Cables are comes under equipment of Airtel.