TDS rate on software development charges

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Samir (Querist)
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04 April 2009 Hi,

I would like to know what is TDS rate on software devlopment charges also what would be TDS rate if i purchase software?

Also does upgradation software charges liable to TDS

Ashish Aggarwal

Ashish Aggarwal (Expert)
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04 April 2009 software develpoment/upgradation is consulting and therefore will come under Sec 194J. If you have purchased a software there will not be any TDS because it is a purchase.

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Mukund

Mukund (Expert)
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06 April 2009 If you purchases any universal software then there will be no liability of TDS but if you give contract for special software as per your requirment & if value of contract exceed the limit you have to deduct TDS on the same amount u/sec 94C

In case of software development & upgradation TDS applicable U/Sec 94J professional & technical services

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