For tds u/s. 195
This query is : Resolved
20 May 2013
Dear Sir,
Our Client (a pvt ltd co.) has purchased a customization software from US Co., now we have to made payment for this.
Whether our client has to deduct a tds u/s. 195 ( payment made to non resident) or not.
thanks & regards.
Our Client (a pvt ltd co.) has purchased a customization software from US Co., now we have to made payment for this.
Whether our client has to deduct a tds u/s. 195 ( payment made to non resident) or not.
thanks & regards.
20 May 2013
Yes. TDS will apply u/s.195 for software purchase from outside India
Message likes :
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20 May 2013
if it is on actual basis service tax not apply. please refer the Intercontinental Consultants ... vs U.O.I. & Anr on 30 November, 2012
21 May 2013
at what rate tds should be deducted
21 May 2013
Dear Experts,
As per your advise to refered a case study, it seems to belonging a re-imbursement of expneses under service tax rules, but in our case it is pure purchase from us co.
A us co. manufactured a software which is required by our needs.
As per your advise to refered a case study, it seems to belonging a re-imbursement of expneses under service tax rules, but in our case it is pure purchase from us co.
A us co. manufactured a software which is required by our needs.
21 May 2013
TDS will be deducted 10% which subject to DTTA rate
25 May 2013
Hi Kiran,
As per amendment in Budget 2012 any software purchase shall be deemed as royalty under sec 9(1)(vi) .
Now the safest option is to deduct TDS @ 25.75% (rate changed as per Budget 13), otherwise check whether any option as per DTAA. But DTAA option has to also go through PAN and TRC requirements.
Anuj
femaquery@gmail.com
As per amendment in Budget 2012 any software purchase shall be deemed as royalty under sec 9(1)(vi) .
Now the safest option is to deduct TDS @ 25.75% (rate changed as per Budget 13), otherwise check whether any option as per DTAA. But DTAA option has to also go through PAN and TRC requirements.
Anuj
femaquery@gmail.com
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