Tds on computer software

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This query is : Resolved

Karan Khurana (Querist)
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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

Vijay Thadani

Vijay Thadani (Expert)
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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.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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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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