TDS Applicability on Services
When you purchase services such as Google Workspace Licenses, Domain Registration, hosting, SSL, DNS, and Technical Support from our company,TDS (Tax Deducted at Source) may be applicable while making payment. The applicability of TDS depends on the nature of the transaction and the relevant provisions of the Income Tax Act.
Technical Support Services
For Technical support services, TDS is applicable under Section 194J, which covers technical services.
The applicable rate is 2%. Customers are requested to deduct TDS accordingly on the value of technical support services while processing payments.
Products & Standard Services
Products and standard services such as Google Workspace licenses, domain registration, hosting, SSL, and DNS are generally treated as sale of goods or standard services, TDS is not applicable on these components.
Example
If an invoice includes both product and technical support components, TDS should be applied only on the
technical support portion at the applicable rate of 2% under Section 194J.
We request all our customers to kindly follow the above approach to ensure smooth processing and compliance.
In case of any clarification regarding TDS applicability, our accounts team will be happy to assist you at account@sanver.com.