TDS on Software
This query is : Resolved
11 June 2021
(A) Software is purchased as a
(1) perpetual licence, which does not require renewal; for example, Windows 10, Microsoft Office (not Microsoft Office renewable licence)
(2) initial purchase of licence for defined period and then its renewals (say, one / two / three years); for example, Antivirus
Whether TDS is deductible in above cases?
(B) In GST invoice, some software sellers classify software as goods by using HSN code(s) and some others classify it as services by using SAC code(s). Whether such classification under GST can be linked to TDS deduction requirement stating that if software is classified as goods, TDS is not deductible and if it classified as services, TDS is deductible.
Request all of you to give a detailed reply.
(1) perpetual licence, which does not require renewal; for example, Windows 10, Microsoft Office (not Microsoft Office renewable licence)
(2) initial purchase of licence for defined period and then its renewals (say, one / two / three years); for example, Antivirus
Whether TDS is deductible in above cases?
(B) In GST invoice, some software sellers classify software as goods by using HSN code(s) and some others classify it as services by using SAC code(s). Whether such classification under GST can be linked to TDS deduction requirement stating that if software is classified as goods, TDS is not deductible and if it classified as services, TDS is deductible.
Request all of you to give a detailed reply.
CA R SEETHARAMAN
(Expert)
12 June 2021
A) Yes, TDS applicable in the above cases, as it will fall under software sales.
B) TDS applicable in both the cases as software is only sold.
B) TDS applicable in both the cases as software is only sold.
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