TDS on Google Services

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Ashu jain

Practicing

88 Points Posted on 01 April 2020

Is TDS u/s 194C or 194J applicable to google services if the same is paid by company for G-suite, Youtube advertising etc.

Thanks & Regards

Replies (4)

Quick Summary

TDS on Google services like G-Suite and YouTube ads is generally covered under Section 194J @10% as it is treated as technical/IT services (SAC 998319). Some consider 194C, but most views support 194J deduction when used for business purposes.

CA ABHAY GUPTA

Practice

1639 Points Posted on 01 April 2020

The person availing the services of G suite is liable to deduct TDS as per the Income Tax provisions. The services provided by the Google is classified under ‘Other information Technology Service’ SAC 998319 and hence the deductor is liable to deduct TDS @ 10% under Section 194J.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 01 April 2020

Yes.... I agreed to Mr CA ABHAY GUPTA view.,

@ Mr Ashu Jain.,

Are You received the service from Google or Any Other as franchisee...?

sabyasachi mukherjee

Profession

19978 Points Posted on 03 April 2020

@ ashu

so all of us avail google services.

Aashok Kumar Sharma

Finance/Compliance Consultant

77925 Points Posted on 06 November 2026

Depends on which Google entity invoices you:

• Google Ads billed by Google India Pvt Ltd (reseller): an advertising contract, Sec 194C at 2% (Google India itself advises deduction under 194C). Threshold Rs 30,000 per bill or Rs 1 lakh a year.

• Google Workspace or Cloud billed by Google Asia Pacific (Singapore) or another foreign entity: standard subscripttion, not royalty or FTS under the DTAA after Engineering Analysis (SC 2021). No TDS under Sec 195 if Google gives TRC + Form 10F + no-PE declaration. File Form 15CA Part D.

• Equalisation Levy: 6% on online ads was abolished from 1 April 2025, so EL no longer applies.

• GST:

– Indian invoice: forward charge 18%, ITC available.

– Foreign invoice (B2B): IGST 18% under RCM on import of services, self-invoice, ITC available.

• From 1 April 2026: Sec 393 (resident) and Sec 397 (non-resident) of the Income-tax Act, 2025 replace 194C/195.