We have recently gone in for leasing a dedicated server for hosting our ERP application. This server physically lies outside our company premise in a common data centre in India. But, the data is accessible globally. The Invoice received for this service writes a narration as Dedicated Hosting Service. Also, there is a Service Tax levied @ 12.5%.

How much TDS shall we deduct while issuing the cheque to the service provider in such cases?

This appears to be an INDIAN tax question.

This forum deals with U.S. taxes.