Whether TDS has to be deducted on Software license renewals termed as subscripttion payments??
Support your answers with case laws or sections from the act, if any??
No section covers the laibility to deduct TDS on software license. According to me License fees does not attract TDS.
Sorry but i don't know any case law on the same.
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Please mention the amount of payment for it.
U/s 194C, tax needs to be deducted.
Could you please explain how will it fall in sec 194C
Is there any contract in this issue?
It is simply the license fees and not contract.
I dont Know Any Case law. but Answer to Your Question is
IT IS COVERED UNDER SECTION 194 J. FOR EXAMPLE
WE ARE USING COMPUTDS SOFTWARE. IT IS POLICY TO RENEW IT BY EVERY YEAR.THEN IT IS PROVIDING US SERVICES SO TDS IS DEDUCTED.
I dont think query is related to computer software updation. Query is on software license fees renewal.
IF LICENSE FEE IS RELATED TO PRIVATE CO THAN IT IS COME UNDER FEE & PROFESSIONAL CHARGES 194 J
IF LICENSE FEE IS RELATED TO GOVT. CO. THEN THERE IS NO TDS TO BE DEDUCTED
We need more clarification in this case. What kind of renewal it is. Is it a yearly renewal or more than a year?
Tax need to be deducted U / Section 194J if the gross payment exceed Rs. 20,000.00 for a F.Y. Please read Section 44AA for a better understanding.
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