TDS on payment towards purchase of computer software
This query is : Resolved
Guest
Guest
(Querist)
15 December 2008
As you may be aware that under Section 194 J of the Income tax Act which was amended to include Royalty with effect from 13.07.2006 by the Taxation Laws (Amendment) Act 2006, we have been advised that Computer Software is covered by the definition of Royalty as per the Income tax Act. As such, we have been advised to deduct TDS on purchases of software made from 01.04.2008.
TDS @ 11.33% will be deducted as per law for the purchases of software made from you from 01.04.2008 to 31.10.2008. We shall deduct the TDS as applicable for which your account will be debited and tds certificate will be provided to you for the same.
Pls validate immdtly
TDS @ 11.33% will be deducted as per law for the purchases of software made from you from 01.04.2008 to 31.10.2008. We shall deduct the TDS as applicable for which your account will be debited and tds certificate will be provided to you for the same.
Pls validate immdtly
CA Tilak Raj Sharma
(Expert)
15 December 2008
There will be two situations: First the software that is made by you (means programmed as per your requirements and as per your directions) and second is standard softwares
TDS is applicable only in the first case and not in the second case.
TDS is applicable only in the first case and not in the second case.
Ravikumar.G
(Expert)
15 December 2008
there is no need to deduct tax at source if there is purchase of copyrighted software and not the copyright.
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