Tds on website purchase
This query is : Resolved
06 March 2019
We have purchase website so whether is liable for TDS deduction,if yes in which section???
KAVIRAJA ADDANGADI
(Expert)
06 March 2019
TDS applicable u/s 194J 10% to be deducted if threshold limit exceeds rs.30000/
27 July 2025
Got it! Here’s a simple explanation about **TDS on website purchase**:
---
### When you say **purchase of website**, it usually means either:
* Buying the **website as a product or asset** (like buying a ready-made website or software), or
* Paying for **website development services** or **design/maintenance services**.
---
### So, how to treat it for TDS?
1. **If it’s a purchase of an asset (like website ownership or software license):**
* Usually, this is treated as a **capital asset purchase**.
* **No TDS is deductible** under sections like 194J because this is not a service or professional fees.
* TDS does **not apply on purchase of goods or capital assets**.
2. **If it is payment for website development, designing, or maintenance (services):**
* TDS applies under **Section 194J** (Fees for professional or technical services) at **10%**, if the amount exceeds ₹30,000.
* This is considered **payment for services** and hence liable for TDS.
---
### Summary:
| Nature of Payment | TDS Applicability | Section | Rate |
| --------------------------------------- | ----------------- | ------- | ---- |
| Purchase of website as an asset | No TDS | N/A | N/A |
| Payment for website development/service | Yes | 194J | 10% |
---
### Important:
* Always clarify with your vendor what exactly you are paying for — is it asset transfer or service?
* If it’s asset purchase, TDS **not applicable**.
* If service, deduct TDS as per 194J.
---
Need help drafting an email or invoice note to your vendor clarifying this?
---
### When you say **purchase of website**, it usually means either:
* Buying the **website as a product or asset** (like buying a ready-made website or software), or
* Paying for **website development services** or **design/maintenance services**.
---
### So, how to treat it for TDS?
1. **If it’s a purchase of an asset (like website ownership or software license):**
* Usually, this is treated as a **capital asset purchase**.
* **No TDS is deductible** under sections like 194J because this is not a service or professional fees.
* TDS does **not apply on purchase of goods or capital assets**.
2. **If it is payment for website development, designing, or maintenance (services):**
* TDS applies under **Section 194J** (Fees for professional or technical services) at **10%**, if the amount exceeds ₹30,000.
* This is considered **payment for services** and hence liable for TDS.
---
### Summary:
| Nature of Payment | TDS Applicability | Section | Rate |
| --------------------------------------- | ----------------- | ------- | ---- |
| Purchase of website as an asset | No TDS | N/A | N/A |
| Payment for website development/service | Yes | 194J | 10% |
---
### Important:
* Always clarify with your vendor what exactly you are paying for — is it asset transfer or service?
* If it’s asset purchase, TDS **not applicable**.
* If service, deduct TDS as per 194J.
---
Need help drafting an email or invoice note to your vendor clarifying this?
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