TDS on the amount of computer software

This query is : Resolved 

27 March 2009 Dear All,

My query is that the TDS is applicable on the amount of the software purchase?

According to my rererence, payment of the software purchase is covered U/s 9(1) royalty payment and royalty is covered under the Section 194-J, so i feel that, TDS is applicable on the amount of the computer software, but i need your expert comment on this issue.

Bhavin Shah

27 March 2009 No, If it is a normal purchase then there is no point of TDS but if it is a service agreement then you need to deduct TDS on Royalty payment

28 March 2009 agreed with above, just to add furthure, the same has already been clarified by department.


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