Notification clarify that No deduction of TDS on purchase of software provided specified conditions namely:-
Notification shall come into force w.e.f 01st July,2012
Payment by a person (hereafter referred to as the transferee) for acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where-
(i)the software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,
(ii)tax has been deducted- (a) under section 194J on payment for any previous transfer of such software; or (b) under section 195 on payment for any previous transfer of such software from a non-resident, and
(iii)the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
2.This notification shall come in to force from the 1st day of July, 2012.
TDS applicable:-
TDS applicable if it is customised software.(other than standard/pacakaged software)
CAclubindia
