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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 Our company in ship design so we purchased software for designing & various projects.

But in invoice of the purchasing company it is shown as "Standard Package on rental basis for 2years 350,000 350,000
23rd July, 2010 To 22nd July, 2012"

Please advice tds is applicable or not

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

08 September 2010 My view, TDS will be deductible under 194J, beacause it is customised software for your company particularly

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2010 I also agree with your view but from their side they say that "You please appreciate that as this is a product paid in Indian Rupees will not be subject to any TDS. Only we will be paying tax for the commission received from the Principals"

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

09 September 2010 In customised software, there will be a 3 element

1. Hardware
2. Licence fees
3. Professional charges

of the bill is raised for 1 & 2 Separatley then the TDS applicable only on no.3 , if the bill is raised gross then TDS applicable on full value

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