Tds on website purchase

This query is : Resolved

Share Report Follow Query Ask a Query

uma

uma (Querist)
Follow

06 March 2019 We have purchase website so whether is liable for TDS deduction,if yes in which section???

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
Follow

06 March 2019 TDS applicable u/s 194J 10% to be deducted if threshold limit exceeds rs.30000/

uma

uma (Querist)
Follow

07 March 2019 Ok thanks..in which basis deducted TDS it's purchase of websites.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

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?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now