Tds on purchase of software?
This query is : Resolved
03 May 2012
Please guide me that whether TDS is applicable on Purchase of Software (i.e. Tally ERP). As the Invoice bill of Tally Solutions is as under:
Software (Tally ERP) Cost = Rs.50000/-
Service Tax @ 12.36%=Rs.6180/-
Central Sales Tax @ 5% On (50000+6180) =Rs.2809/-
Total = 58989/-
I also want to know why the CST charged on Service tax? Whether co. can charge the tax on tax?
Please reply soon as its urgent??
Thanks in advance..
Software (Tally ERP) Cost = Rs.50000/-
Service Tax @ 12.36%=Rs.6180/-
Central Sales Tax @ 5% On (50000+6180) =Rs.2809/-
Total = 58989/-
I also want to know why the CST charged on Service tax? Whether co. can charge the tax on tax?
Please reply soon as its urgent??
Thanks in advance..
03 May 2012
TDS is not applicable on purchase of software.
03 May 2012
But why he is charging service tax?? And is Tax on Tax is right?? If TDS is not applicable, can you please give it to me in written?
03 May 2012
An amendment in Section 9 in Finance Bill 2012 is likely to be made effective and Explanation 5 is being inserted for "removal of doubt" in this respect.
.
It is considered as Royalty. 194J will be applicable.
.
I do not have any view about , why CST ????
but can say, TDS to be deducted to on the entire invoice amount.
.
It is considered as Royalty. 194J will be applicable.
.
I do not have any view about , why CST ????
but can say, TDS to be deducted to on the entire invoice amount.
Message likes :
2 times
Guest
Guest
(Expert)
03 May 2012
All that v can do is to clear it frm vendor as why cst is charged on d full amt incl service tax. I have come across such cases involving vat nd ST and askd d vendor to change d invoice.
04 May 2012
Basically TDS is deducted where any service is provided and therefore the service tax @ 12.36% is levied also. But CST is applicable where any item is deleivered and hence according to me CST or VAT is not applicable.This also has to be cheked in the light of Item being deleivered to the parties.
04 May 2012
Dear Sanjay,
TDS is not applicable in case of purchase of Computer software.
Charging of service tax is not the only reason for deducting TDS, it is the nature which need to be taken care at the time of TDS applicability.
TDS is not applicable in case of purchase of Computer software.
Charging of service tax is not the only reason for deducting TDS, it is the nature which need to be taken care at the time of TDS applicability.
04 May 2012
Dear Pankaj,
As per Sec 194J TDS is to be deducted on puchase of software as it comes under Royalty as defined in sec 9(1)(VI).
I think Paras Bafna sir is right..
Thanks sir.
As per Sec 194J TDS is to be deducted on puchase of software as it comes under Royalty as defined in sec 9(1)(VI).
I think Paras Bafna sir is right..
Thanks sir.
04 May 2012
Dear Sanjay,
For fixed assets classification, computer include computer software.
and TDS is not require to pay on purchase of Fixed assets.
For fixed assets classification, computer include computer software.
and TDS is not require to pay on purchase of Fixed assets.
05 May 2012
But Dear pankaj,
If the licence of the software is expired in one year then why should i booked it in fixed assets. because i have to renew the licence in next year again.
Please correct me if i m wrong...
If the licence of the software is expired in one year then why should i booked it in fixed assets. because i have to renew the licence in next year again.
Please correct me if i m wrong...
27 July 2025
https://docs.google.com/document/d/1vdUw5Lozi1Fm0qVxy3JS1E15Zq_8g8W5GuVoTPRQnes/edit?usp=sharing
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Subscription paid to foreign customer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
