TDS rate on software development charges

This query is : Resolved 

04 April 2009


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 (Expert)
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.

Mukund (Expert)
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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