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TDS on Cloud Storage Service

07 February 2019

I want to know Tds implication on Cloud Storage service, Database Cloud . whether it will be deductible under 194J or 194C?

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7 Replies

Tanmay Bhavar (Practice) (39 Points)
Replied 07 February 2019

It shall be deducted under section 194C since there is a contract for data storage, retention and manipulation.

194J is for technical services by humans, whereas this is not your case. Also, 194-I is for physical rental services offered which is not our case either.

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Theepika (Article assistant) (57 Points)
Replied 07 February 2019

it will be chargeable under 194C.

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 07 February 2019

I think tds under 194 I shall be made as its related to use of space.
its neither a contract nor a profssioal service

priti (account assistant) (23 Points)
Replied 19 February 2020

CAN I GET EXACT ANSWER ABOUT CLOUD SERVICES TDS DEDUCTION

Priyank (CA Final Student) (139 Points)
Replied 19 February 2020

It will be chargeable under 194C.

30,000, No TDS on payment to contractor is required to be deducted. However, if the total of all such payments made or to be made during a financial year exceeds Rs. 75,000; TDS shall be deducted under Section 194C at the rates mentioned above.