TDS on Licence Fees

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Discussion concludes that TDS on software licence fees paid to an Indian vendor should be deducted under section 194J at 10 percent, as it is treated as professional or technical service, regardless of monthly or yearly payment.

HITESH KHONA

HITESH KHONA (Querist)
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05 March 2010 Hi all,
We are a IT Co and we are purchasing software and the vendor is raising invoice as licence fees. The vendor is a indian co.

This software is purchased either monthly or yearly basis

So whether TDS to be deducted u/s 194C or secftion 194J
Please suggest. Its urgent

Regards

Hitesh Khona

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 March 2010 Dear Hitesh,

TDS on License Fees will be deducted @10% u/s 194J.

HITESH KHONA

HITESH KHONA (Querist)
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05 March 2010 Thanks for the answer

But if the licence fees is purchased every month or yearly, then alos it will be 194J or it will be 194C

Please Reply
Regards
Hitesh

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 March 2010 It will be 194J as the vendor is showing this as licence fees.

HITESH KHONA

HITESH KHONA (Querist)
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05 March 2010 Hey thank a Lot
hitesh

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 March 2010 You'r welcome

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