For tds u/s. 195

This query is : Resolved

Kiran Nandu (Querist)
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20 May 2013 Dear Sir,

Our Client (a pvt ltd co.) has purchased a customization software from US Co., now we have to made payment for this.

Whether our client has to deduct a tds u/s. 195 ( payment made to non resident) or not.

thanks & regards.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 May 2013 Yes. TDS will apply u/s.195 for software purchase from outside India

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 May 2013 if it is on actual basis service tax not apply. please refer the Intercontinental Consultants ... vs U.O.I. & Anr on 30 November, 2012

Kiran Nandu

Kiran Nandu (Querist)
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21 May 2013 at what rate tds should be deducted

Kiran Nandu

Kiran Nandu (Querist)
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21 May 2013 Dear Experts,

As per your advise to refered a case study, it seems to belonging a re-imbursement of expneses under service tax rules, but in our case it is pure purchase from us co.

A us co. manufactured a software which is required by our needs.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 May 2013 TDS will be deducted 10% which subject to DTTA rate

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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25 May 2013 Hi Kiran,

As per amendment in Budget 2012 any software purchase shall be deemed as royalty under sec 9(1)(vi) .

Now the safest option is to deduct TDS @ 25.75% (rate changed as per Budget 13), otherwise check whether any option as per DTAA. But DTAA option has to also go through PAN and TRC requirements.

Anuj
femaquery@gmail.com

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