TDS on purchase of Software/SAAS services from a foreign entity by a LLP

TDS
1

I’m an LLP planning to purchase a Software/SAAS subscription from a US-based company (e.g. Slack). It will be about $50 per month, paid directly online. Do I need to pay TDS for it? If yes, how?

2

Hey @programmer97,

As per a ruling made by the Supreme Court in 2021, SAAS services are excluded from the Royalty definition and hence TDS is not deductible u/s 195.

Hope this helps!

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