TDS Deduction
This query is : Resolved
Raghavendra
(Querist)
31 January 2011
Dear All,
Query relats to TDS deduction.
Company has paid Rs.1,00,000-00 ( Service Tax of Rs. 10,300-00 extra) for software licence renewal, whether i have to deduct TDS on that? if, what rate, please can any one explain. please...
Query relats to TDS deduction.
Company has paid Rs.1,00,000-00 ( Service Tax of Rs. 10,300-00 extra) for software licence renewal, whether i have to deduct TDS on that? if, what rate, please can any one explain. please...
31 January 2011
Yes...TDS @ 10 % will apply.
Message likes :
1 times
31 January 2011
I have presumed that this software is a customized software, especially as per your requirement.
If the above is not the case & the same software is a general software then TDS will not apply.
If the above is not the case & the same software is a general software then TDS will not apply.
Raghavendra
(Querist)
31 January 2011
Yes, its antivirus software, for that we have paid renewal of licence.
31 January 2011
In the case of any software only the license is given for the use of the software. 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 the use of software is in the nature of a payment for a copyright. In such a transaction, the primary object of the transaction and intention of the parties, is to avail of an article for use.
Therefore, no TDS liability arise in your case.
Therefore, no TDS liability arise in your case.
Sunil Kr. Sanganeria
(Expert)
31 January 2011
TDS ia not applicable on renewal of Software licence
26 June 2012
This is a usage-based payment made by one party (the "licensee") to another (the "licensor") which is called 'royalty' and accordingly section 194J attracts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
