Tds deduction on web services

TDS 8715 views 10 replies

Jakeer

Accountant

40 Points Joined October 2017

Hi,

My company is using amazon web services for server maintenance and invoice is coming nearly 1 lak per month,as i know on services i need to deduct tds on professional services,can you help me on my treatment.

But to deduct tds on amazon services.it is not offering online payment they are settling full invoices with only credit card payment.could any one please guide how to treat this issues.

Thanks

Jakeer

Replies (10)

Guest

pay that much what ever applicable after deducting tds

VINAYAK HEGDE

accounting & taxation freelancer

246 Points Joined February 2013

first you have review the conrtact with them,

saurav joshi

article

45 Points Joined March 2014

is the web service providing company is an indian company? or you making payment to overseas foreign company?

Jakeer

Accountant

40 Points Joined October 2017

Hi Joshi, As i know it is Amazon web services they have office in Mumbai,they are accepting payments in INR,the problem is they are settling off the bill amount with exact credit card payment this is not allowing me to deduct tds on their invoice...

Jakeer

Accountant

40 Points Joined October 2017

Hi Vinayak, We don't have any type of agreement, it is server hosting how much time we utilise the servers they will invoice on DATA BASIS.

saurav joshi

article

45 Points Joined March 2014

You have to deduct tax under 194J technical services provided by resident assessee.
Although it is purely there portal related problem you should contact there account department and resolve that, as the burden of interest on non deduction of TDS is upon you.

GK Palem

2 Points Joined September 2018

Jakeer, were you able to find out the answer for ths? I am also looking for information on this.

tejaswinee

Student

64 Points Joined August 2015

Hello everyone,

Can someone actually help in this matter, like payment is auto deducted from credit card therefore, we cannot deduct TDS at the time of payment, same applies to Google G- Suite Services but, they have prescribed that, they will adjust the TDS amount aftre receiving TDS certificates in upcoming invoices but, till then this will be our liability to pay and then get credit from them, which is a tedious procedure.

DURGESH KUMAR GUPTA

STUDENT

62 Points Joined December 2008

You Can Deduct TDS U/s 194J and send TDS Certificate to AISPL and they will reimburse the TDS amount. Please refer Service Level Agreement provided by AISPL on their website and read Para 5.2 Taxes. They are using the word withholding taxes.