TDS on Subscription of online access of Database

Company is paying 1,09,000 for Subscripttion for online access of Database and is deducting TDS under section 194O @ 1%, in my opinion should deduct under section 194C both reasons are there first the 5 lakh limit of 194O and it is like contract for annual usage, am I write??
Replies (5)
Quick Summary
Users discuss the applicable TDS section for annual subscription charges paid for online database access. The consensus is that Section 194O does not apply, as it relates to e-commerce transactions, while Section 194J may be more appropriate depending on the nature of the service.

Is your company selling goods on e-commerce platform?

An E-commerce operator is a person who owns, operates, or manages a digital/electronic facility for the sale of goods and services. He is responsible for making payments to the e-Commerce participant on such sales.

An E-commerce participant is a person who sells goods, services, or both through an electronic facility provided by an E-commerce operator. 

According to Section 194O, an E-Commerce operator is required to deduct TDS for facilitating any sale of goods or providing services through an E-Commerce participant.

No, company is operating medical college in which they had deducted TDS under section 194O on the payment for Annual subscripttion of Online access to database of Rs 104000 which should be under section 194C in my opinion.

TDS u/s. 194 O relevant to  facilitating any sale of goods or providing services through an E-Commerce participant, which is not applicable here.

As per the services availed, sec. 194J seems to be more appropriate.

Thank you Sir 🙏🏻

You are welcome.             

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details