Hosting and information technology provisioning services

Hey Sakshi!

Regarding TDS on Hosting and IT Infrastructure Provisioning Services (SAC 998315):

• These services generally fall under the category of technical services.

• As per Section 194J of the Income Tax Act, TDS on fees for technical services is deducted at 2%.

• So yes, TDS @ 2% under Section 194J applies to Hosting and IT Infrastructure Provisioning Services.

Just ensure the payment is towards professional/technical services and not towards sale of goods or other categories.