Tds on computer software

This query is : Resolved 

14 September 2013 Dear All,

Can any one explain me if we are paying money for purchase of Computer Software & for Software Customization which section apply for TDS Deduction

Section 194 J Professional 10 % rate
OR
Section 194 C Contractor


Regards
Karan Khurana

14 September 2013 There is no TDS on purchase of the computer software. But if you are after purchasing the software getting it customized in my opion it amount to a professional service with TDS u/s 194J with respect to fees paid on such customization.

14 September 2013 It depends on the nature of transaction between you and your vendor.

If the software is made according to your specifications,TDS will be applicable u/s 194J @ 10%...

If the software is a readymade software,TDS will not be attracted.



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