TDS on purchase of Shutter Stock License for downloading images for Co. website. total pur. >1lakh

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This discussion explores whether Tax Deducted at Source (TDS) is applicable when a company purchases a Shutterstock license, paid in dollars via credit card, for downloading images for its website. While one opinion suggests no TDS is required for such copyright purchases from NRIs, another user questions this, citing it as a potential copyright purchase from a non-resident. A relevant case (Autodesk Asia Pte Limited vs. DCIT) is mentioned, indicating no TDS under Section 195 for software licenses purchased from non-residents for resale or use.

mohit aggarwal

mohit aggarwal (Querist)
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04 October 2022 My company purchased Shutterstock License 365 days subscription paid through credit card. purpose for purchase is download Images & use it on our own company website. Whether need to Deduct & Submit TDS. If Yes at what rate. payment in dollars.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 October 2022 No TDS need to be deducted in such a case.

mohit aggarwal

mohit aggarwal (Querist)
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07 October 2022 Sir, With due respect, i want to ask the reason, Why no TDS should be deducted on this, isn't it a copyright purchase from NRI,?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 October 2022 No TDS u/s 195 on purchase of software licenses from non-residents for resale or use.
In favour of: Assessee
Appeal No: IT (IT) No. 3234/Bang/2018
Case Details: Autodesk Asia Pte Limited vs. DCIT

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