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Query on TDS for 1-year cloud service payment to an Indian company. It is treated as technical services, so TDS @2% under Section 194J applies if annual payment exceeds Rs.50,000, deductible at booking or payment, whichever is earlier.

Rajkumar Gutti

Rajkumar Gutti (Querist)

02 March 2026 Payment made to Indian company for providing cloud based service. Subscription is for 1 year.
Is tds applicable, if yes which sec.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

03 March 2026 For a 1-year cloud subscription payment to an Indian company, you should deduct TDS @ 2% under Section 194J (as Fees for Technical Services), provided the total annual billing exceeds ₹50,000. Ensure the deduction is made at the time of booking the invoice or making the payment, whichever comes first.

Rajkumar Gutti

Rajkumar Gutti (Querist)

03 March 2026 धन्यवाद सर. Thanks sir

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