Taxes
This query is : Resolved
29 September 2013
We are a manufacturer in Maharashtra, buying Edge Cam Software for designing worth Rs.120000/- . Suppler from Karnataka charging Service Tax @ 12.36% & also CST @5.5% . Is it correct ? if it is yes should I deduct TDS on full Amount. Can I purchase it with 2% CST against C'Form.
29 September 2013
Software will attract both VAT/CST and Service tax. so inter state CST apply.
If your software purchase fulfil the following conditions then TDS will not apply
Payment by a person (hereafter referred to as the transferee) for acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where-
(i) the software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,
(ii) tax has been deducted-
(a) under section 194J on payment for any previous transfer of such software; or
(b) under section 195 on payment for any previous transfer of such software from a non-resident, and
(iii) the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor
otherwise TDS will apply
Incase your CST registration allows to purchase the software against C form, then you can issue C form and purchase
If your software purchase fulfil the following conditions then TDS will not apply
Payment by a person (hereafter referred to as the transferee) for acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where-
(i) the software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,
(ii) tax has been deducted-
(a) under section 194J on payment for any previous transfer of such software; or
(b) under section 195 on payment for any previous transfer of such software from a non-resident, and
(iii) the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor
otherwise TDS will apply
Incase your CST registration allows to purchase the software against C form, then you can issue C form and purchase
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