Matter of query regarding tds on software purchase

This query is : Resolved

Guest

Guest (Querist)

20 June 2012 good evening sir
if we purchase any software than role of tds
we can deduct TDS on Software Purchase under section 194J @ 10% if it purchase India and its also depend on the Nature of software , similarly if Software Purchase for out side of India it will detected under section 195 @20.6%.(IF PAN not Available).
but sir as per new notification in some condition we will not tds deduct on software purchase u/s 194j can you please explain me about those condition.
thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 June 2012 Please read the following news article-

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article3532117.ece?homepage=true&ref=wl_home

.
Relevant portion is being produced hereunder- where TDS is not required to be deducted-
The transferor should not be the original developer, but someone who had acquired the software from the original developer (from within or outside) or through a chain of dealers (from within India or outside).

The other condition is that the transferor should have deducted tax from the payment made to the original developer or the previous dealer from whom the software was acquired.

The transferee—who acquires the software—should obtain a declaration from the transferor that it has deducted tax from payment made to original developer or previous dealer, from whom such software was acquired.

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