TDS on purchase of application Software
This query is : Resolved
15 May 2020
As we are aware that there is an amendment in the Finance Bill 2020 reg rate of TDS u/sec 194J Professional @ 10% and Technical services @ 2%.
Is purchase of software covered under Professional or Technical services?
Technically expert person can develop a software so I think it shall cover under "Technical" services. Please advice.
Is purchase of software covered under Professional or Technical services?
Technically expert person can develop a software so I think it shall cover under "Technical" services. Please advice.
15 May 2020
It will fall under technical service 2% TDS applicable.
23 May 2020
Thanks Seetharaman Sir..!!
Our Internal Auditor says to deduct 10% u/sec 194J. They have quoted case laws of Wipro.
Request you to pls give explanation to your opinion.
How can we define it as Technical service? I think Technically qualified person is able to develop a software, but may I know any other reason pls?
Our Internal Auditor says to deduct 10% u/sec 194J. They have quoted case laws of Wipro.
Request you to pls give explanation to your opinion.
How can we define it as Technical service? I think Technically qualified person is able to develop a software, but may I know any other reason pls?
23 May 2020
I agree with you a technical person not a professional defined under section 44AA can develop a software.
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