VPN licence

Regarding TDS on VPN license renewal payment (like SonicWall license):

1. Is TDS applicable?
   Yes, payment for software licenses or IT services is generally subject to TDS.

2. Applicable Section:

• If the payment is for technical services (IT software license considered as technical service), then Section 194J(TDS on fees for professional or technical services) applies.

• If the payment is classified as royalty, then Section 194C (contractual payments) or 194H (commission) won't apply here. For software licenses, 194J or 194I (rent) might be relevant, but license fees are generally under 194J.

3. TDS Rate:

• Under Section 194J, TDS rate is 10% (if resident payee).

• If the vendor is a non-resident, different provisions and rates may apply.

4. Summary:

• Deduct TDS under Section 194J at 10% on the VPN license renewal fees.

• Ensure PAN of the vendor is available to avoid higher TDS.