TDS
This query is : Resolved
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
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
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
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
26 March 2010
agree with expert
26 March 2010
TDS is normally in the context of expense.. That too revenue expense.. Capital expense normally not to deduct the TDS...
26 March 2010
tds not applicable for software purchase
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