Tds on monthly service to run software
This query is : Resolved
Rajesh Kumar Sharma
(Querist)
17 December 2018
Dear,
One of our Client pay monthly charges of rs 70000/- to Software company to calculate his clients/distributors weekly commission and provide monthly bill as Maintenance of Software. We deduct TDS u/s194C @2% but AO is saying that it is professional service and TDS is to be deducted U/s194J @10%. Kinly clear with some case law. It is URGENT
One of our Client pay monthly charges of rs 70000/- to Software company to calculate his clients/distributors weekly commission and provide monthly bill as Maintenance of Software. We deduct TDS u/s194C @2% but AO is saying that it is professional service and TDS is to be deducted U/s194J @10%. Kinly clear with some case law. It is URGENT
Guest
Guest
(Expert)
17 December 2018
Yes, here TDS is under section 194J as it is a technical service.
KAVIRAJA ADDANGADI
(Expert)
17 December 2018
Software services falls under Professional services not Contract, 94J Applicable.
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