For tds u/s. 195
This query is : Resolved
Kiran Nandu
(Querist)
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.
CMA Ramesh Krishnan
(Expert)
20 May 2013
Yes. TDS will apply u/s.195 for software purchase from outside India
Message likes :
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CMA Ramesh Krishnan
(Expert)
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
Kiran Nandu
(Querist)
21 May 2013
at what rate tds should be deducted
Kiran Nandu
(Querist)
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.
CMA Ramesh Krishnan
(Expert)
21 May 2013
TDS will be deducted 10% which subject to DTTA rate
CA. Anuj Gupta
(Expert)
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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