Question of deduction of tax at source

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CA in service & CS. dipmaj@
3515 Points Posted on 16 February 2023

Dear Experts

Party will provide a link and/or deliver database electronically which the receiver company will use by trying to procure prospective work orders after contacting the contacts in data base.

Will the payment by receiver company to service provider/supplier liable to tds under income tax law? If so under which section.

Regards,

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On 16 February 2023 at 14:31 Report
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Quick Summary
This discussion explores whether payments made by a company to a service provider for a database, used to procure work orders, are subject to Tax Deducted at Source (TDS) under Indian Income Tax law. Experts debate the applicability of Section 194J, questioning if the provision of a database constitutes a 'technical service' or requires professional expertise for TDS deduction.

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SEO Sai Gr. Hosp.
212441 Points Posted on 16 February 2023

U/s. 194J of IT act... in case of resident company.

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On 16 February 2023 at 16:26
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CA in service & CS. dipmaj@
3515 Points Posted on 16 February 2023

Thanks Sir for your valued feedback.

But where is the exercise of skill or professional expertise here so as to qualify for deduction under section 194J.

Regards,

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On 16 February 2023 at 17:10
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Profession Business
28246 Points Posted on 16 February 2023
No not liable for deduction of tax.
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On 16 February 2023 at 19:32
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SEO Sai Gr. Hosp.
212441 Points Posted on 16 February 2023

Data base under contract is a technical service. i.e TDS u/s. 194Ja of IT act.

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On 16 February 2023 at 19:57

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