Applicability of tds on purchase of software

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TarunSharma (Querist)
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05 July 2014 Dear Sir,

we have entered a agreement with a Indian company for Purchase & Implementation of software (Ms office&Windows) seller had included implementation & support charges in contract he had also charged vat on total amount and service tax on total amount

please tell me applicability of TDS on such payment whether tds will be deducted U/S 194j or 194C

CA Hardik Bunha

CA Hardik Bunha (Expert)
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05 July 2014 if software company provides you license key then it is a sale no tds will be applicable.

if no license key then tds u/s 194J technical service.

TarunSharma

TarunSharma (Querist)
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05 July 2014 its software with licence key but we have purchased it from some ABC (mediator) he also installed such software and charges service tax in his invoice on totalamount

CA Hardik Bunha

CA Hardik Bunha (Expert)
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14 July 2014 it is purchase for you.

you have to deduct tds u/s 194c (it is a maintance contract).

tds will be deducted on gross amount without service tax.

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