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Query on charging of TDS under specific Section

This query is : Resolved 

23 June 2025 Sir
In the Company SAP have been used for preparation of accounts.
The agency/dealer have supplied SAP software has charged around Rs.25000/- per month(Yearly Rs.3.00 Lakh or more) as annual maintenance charge wherein they include update charge of SAP . & modification charge .
please clarify is under which section TDS will be deducted, if possible with reason.
Whether Sec 195J or 194 I or 194C or some other section.
Regards
Abhijit

23 June 2025 The 2% TDS rate applies to software maintenance, software development, installation, renewal, and AMC services u/s 194J(a) IT act, provided these are technical and not professional services.

27 September 2025 Good luck..


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