Tds on sale of software to foreign co.

This query is : Resolved

PRAVIN KOKAM (Querist)
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17 October 2012 Dear Sir / Madam;

Kindly advice on following issues,

Our client has sold software to foreign co. (PAN is not available)

Questions;

1. is TDS applicable?? If yes then at what rate??
2. Can i issue form 16A to that party??
3. If yes then for that i need to file E-TDS but that co. does not hold PAN.

So kindly help me.

The above transaction is not in a nature of sale but in the nature of purchase. sorry.... kindly advice accordingly....

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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17 October 2012 Sir you sold a Software to a Foreign Company, where is the need to deduct any amount of taxes.
Its your usual business and in course of general trading business thereand sale of product you are not required to deduct and taxes. Further you'll receive the sum from the Co. so in this case you have not given any income to NR and therefore no Liability to deduct TDS arises.

PRAVIN KOKAM

PRAVIN KOKAM (Querist)
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17 October 2012 Thanks for your advice.

The transaction is not sale but purchase of software.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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06 November 2012 If we go strictly by income tax act then the software so purchased shall be taxable in India and hence TDS needs to be deducted .

Anuj
femaquery@gmail.com

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