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TDS charges for computer software

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our company take service for computer software maintenance and support on annual basis and company booked invoice as AMC charges is it correct and TDS applicable as per 194C or 194J
Replies (5)
Quick Summary
Annual maintenance and support services for computer software are generally treated as a works contract/service contract and attract TDS under Section 194C at 1% or 2% depending on the status of the deductee. However, in some cases it may be treated under Section 194J if it involves technical/professional services, making it a disputed classification.

Since it is an Annual maintenance contract TDS is chargeable U/s 194C
Sir its is a maintenance of software , TDS u/s 194C to be deducted .
TDS deductible u/s 194C. Rate of TDS 1% for individual /2% for other than individual...
It is a controversial topic whether it is 194C or 194J. U can deduct u/s 194J if supplier is agree. ie safe zone

TDS to be deducted u/s 194C @ 1% / 2% as the case may be .


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