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Discussion > Income Tax > TDS >

Subscription - TDS to be deducted or not?

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Student


[ Scorecard : 165]
Posted On 30 December 2009 at 13:02 Report Abuse

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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shailendra
C.A. FINAL


[ Scorecard : 189]
Posted On 30 December 2009 at 13:07

 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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Shudhanshu Agrawal
CA Final and CS Final


[ Scorecard : 2438]
Posted On 30 December 2009 at 13:12

Please mention the amount of payment for it.




CA Nitin Wadhwani
Chartered Accountant


[ Scorecard : 4459]
Posted On 30 December 2009 at 14:07

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




shailendra
C.A. FINAL


[ Scorecard : 189]
Posted On 30 December 2009 at 14:13

 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.




anuj dhingra
Accounts Executive


[ Scorecard : 152]
Posted On 30 December 2009 at 15:08

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.

 




Shudhanshu Agrawal
CA Final and CS Final


[ Scorecard : 2438]
Posted On 30 December 2009 at 15:22

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




anuj dhingra
Accounts Executive


[ Scorecard : 152]
Posted On 30 December 2009 at 15:29

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




Shudhanshu Agrawal
CA Final and CS Final


[ Scorecard : 2438]
Posted On 30 December 2009 at 15:41

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




Prabeer
B. COM (H) CA & CS Final


[ Scorecard : 5449]
Posted On 30 December 2009 at 17:32

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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