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TDS deduction on Invoice payment

DevSecOps 0 Reputation points
2024-05-21T11:51:06.3866667+00:00

Hello,

We have an existing subscription for Microsoft Azure. The invoices received has amount in INR +GST.

Requesting you to please highlight us whether TDS deduction can be applied on forthcoming invoices or not, if yes under which section TDS will be deducted.

Regards

UmaPrakash

Azure Cost Management
Azure Cost Management
A Microsoft offering that enables tracking of cloud usage and expenditures for Azure and other cloud providers.
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  1. SadiqhAhmed-MSFT 49,331 Reputation points Microsoft Employee Moderator
    2024-05-23T19:45:16.4966667+00:00

    Hello @DevSecOps Thank you for posting your question on the Microsoft Q&A platform. Happy to answer any questions you have!

    As per the Indian Income Tax Act, TDS (Tax Deducted at Source) is applicable on certain types of payments made by businesses, including payments made for professional or technical services. However, the applicability of TDS on your Azure subscription invoices will depend on the specific nature of the services you are receiving from Microsoft Azure.

    If the services you are receiving from Microsoft Azure are classified as professional or technical services under the Indian Income Tax Act, then TDS may be applicable on the payments made for those services. In such cases, you will need to deduct TDS from the payment and remit it to the Indian government.

    To determine the applicability of TDS on your Azure subscription invoices, you should consult with a qualified tax professional or chartered accountant who can review the nature of the services you are receiving and advise you on the applicable tax laws and regulations.

    Additionally, you can also refer to the Azure documentation on taxation and compliance in India, which provides information on the tax laws and regulations applicable to Azure services in India. The documentation includes information on GST (Goods and Services Tax) and other taxes applicable to Azure services in India, but it does not provide specific guidance on TDS.

    I hope this information helps you understand the applicability of TDS on your Azure subscription invoices.

    Reference link: https://learn.microsoft.com/ro-ro/azure/cost-management-billing/understand/mca-download-tax-document

    If the response helped, do "Accept Answer" and up-vote it

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