Tds to software developers: contract or professional?

This query is : Resolved 

31 October 2013 Hello,

A Pvt Ltd Company is making a payment of Rs.1 lac to a software developer who is upgrading their software. My question is whether this will be covered by 194C attracting 1%/2% TDS or by 194J attracting 10%. Are there any case laws in this regard?

02 November 2013 Software developers are professional nature, even professional contracts attract tds under section 194J 10%


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