Cloud service

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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)
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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)
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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)
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03 March 2026 धन्यवाद सर. Thanks sir

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