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Subscription - TDS to be deducted or not?

Student



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??

 
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C.A. FINAL



 Dear Prithi,

 

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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Business



Please mention the amount of payment for it.

 
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Chartered Accountant



U/s 194C, tax needs to be deducted.

 
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C.A. FINAL



 Dear nitin,

 

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.

 
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Accounts Executive



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.

 

 
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Business



I dont think query is related to computer software updation. Query is on software license fees renewal.

 
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Accounts Executive



HEY SUDHANSHU

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

 
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Business



We need more clarification in this case. What kind of renewal it is. Is it a yearly renewal or more than a year?

 
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B. COM (H) CA & CS Final


Originally posted by : Prithi
Whether TDS has to be deducted on Software license renewals termed as subscriptttion payments??

Support your answers with case laws or sections from the act, if any??


 

Hi!

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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