banner_ad

TDS

This query is : Resolved 
Profile Image

Profile Image

(Querist)
26 March 2010 Hi,
we have Purchase of licence Software Win2007,and in bill they have charges Service tax and vat,so my query is that on this bill we will Deduct TDS or Not and limit also crrosed? if applicable then which Section?

Thanks
Arvind
Profile Image

Prakash

Profile Image

Prakash (Expert)
26 March 2010 Hi Arvind

TDS is not applicable.
The software is not designed to suit particulary to requirement of your company. so as a result of that there is no contractual obligation on the part of supllier to render professional service, so 194J is not applicable

Purchase of Software is in nature of payment for copyright

It has been clarified by the Supreme Court of India, in the case of TCS V State of Andhra Pradesh (2004) 271 ITR 401 (SC) that granting of such licenses for th use of software is in the nature of a payment for a copyright.
the prime intention is to use the article.


So as far as i am concerened NO TDS is Payable
Profile Image

CA Ashok Kumar Sahu

Profile Image

CA Ashok Kumar Sahu (Expert)
26 March 2010 agree with expert
Profile Image

CA.ViVeK M ACA

Profile Image

CA.ViVeK M ACA (Expert)
26 March 2010 TDS is normally in the context of expense.. That too revenue expense.. Capital expense normally not to deduct the TDS...
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
26 March 2010 tds not applicable for software purchase
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 05 May 2026
ARTICLED ASSISTANT

JS ADVISORS

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details