On line portal access service taken for 6 month period , for import - export client finding purpose . The vendor raised his invoice for Rs.1 lac including GST.
So on line portal ( Party App ) service is , tds applicable , if yes , then which section
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Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) applies to payments for online portal access services, often used by import-export clients. TDS is indeed applicable under Section 194J of the Income-tax Act, 1961, which covers fees for technical services. For a Rs. 1 lac invoice including GST paid to a company, the TDS deduction would be 10%, amounting to Rs. 10,000.
Yes, TDS (Tax Deducted at Source) is applicable on the payment made to the vendor for the online portal access service. The TDS rate will depend on the nature of the service and the vendor's status (individual, company, etc.). Assuming the vendor is a company, the TDS rate would be 10% as per Section 194J of the Income-tax Act, 1961. Section 194J applies to "Fees for technical services" which includes online portal access services. So, the TDS amount would be: Rs. 1,00,000 (invoice value) x 10% = Rs. 10,000 You, as the buyer, would need to deduct Rs. 10,000 as TDS and pay the balance amount to the