TDS on Payment to Non Resident company for Software AMC
This query is : Resolved
22 February 2011
Dear All
One of my client is making payment to US based software company for
1. Use of Software on annual basis &
2. AMC for the same software
does the client needs to deduct TDS u/s 195 or it can be treated as purchase of software transaction and hence no TDS is required to be deducted ?
One of my client is making payment to US based software company for
1. Use of Software on annual basis &
2. AMC for the same software
does the client needs to deduct TDS u/s 195 or it can be treated as purchase of software transaction and hence no TDS is required to be deducted ?
23 February 2011
The answer shall depend on the exact wordings of agreement but for escaping the rigours of Income Tax Department i suggest you to deduct TDS for both the payments.
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