Wether the tds, on renual of tally licence, has been deduct.
This query is : Resolved
24 June 2014
Tally billed as follow:
tally.NET subscrip.- 34603/-
Service tax- 4152/-
E+SHE Cess- 125/-
Total- 38880/-
Wether the TDS has been deducted on it U/S-194J.
tally.NET subscrip.- 34603/-
Service tax- 4152/-
E+SHE Cess- 125/-
Total- 38880/-
Wether the TDS has been deducted on it U/S-194J.
Guest
Guest
(Expert)
24 June 2014
no need to deduct tds as u r purchasing tally software...................
24 June 2014
you but software then no required if you take AMC then you have tot deduct TDS u/a 194C
25 June 2014
It is under AMC, i am paid it annual. But since the nature is of technical services why 194J is not applicable?
03 August 2025
Great question! Let me clarify the TDS applicability on Tally license renewal and AMC (Annual Maintenance Contract):
TDS on Tally License Renewal:
If you buy software outright or renew a license, it’s generally considered a sale of goods or a license fee, which is not covered under TDS u/s 194J.
Therefore, no TDS deduction is required on purchase or renewal of software license itself.
TDS on AMC (Annual Maintenance Contract):
AMC is considered a service provided by the software company (maintenance and support services).
TDS under section 194J (fees for professional or technical services) is applicable on AMC payments.
So, if you are paying AMC charges for Tally, you must deduct TDS under section 194J.
Why not 194C?
Section 194C is for contractual payments for works or services, mostly related to contracts like construction, transport etc.
AMC is a technical service, so 194J is the correct section to apply.
Summary:
Transaction Type TDS Applicability Section
Purchase / Renewal of License (software) No TDS required N/A
AMC (maintenance/support services) TDS Deduction Required Section 194J
So in your case:
The Tally.NET subscription renewal itself – no TDS.
The AMC payments – TDS under section 194J.
TDS on Tally License Renewal:
If you buy software outright or renew a license, it’s generally considered a sale of goods or a license fee, which is not covered under TDS u/s 194J.
Therefore, no TDS deduction is required on purchase or renewal of software license itself.
TDS on AMC (Annual Maintenance Contract):
AMC is considered a service provided by the software company (maintenance and support services).
TDS under section 194J (fees for professional or technical services) is applicable on AMC payments.
So, if you are paying AMC charges for Tally, you must deduct TDS under section 194J.
Why not 194C?
Section 194C is for contractual payments for works or services, mostly related to contracts like construction, transport etc.
AMC is a technical service, so 194J is the correct section to apply.
Summary:
Transaction Type TDS Applicability Section
Purchase / Renewal of License (software) No TDS required N/A
AMC (maintenance/support services) TDS Deduction Required Section 194J
So in your case:
The Tally.NET subscription renewal itself – no TDS.
The AMC payments – TDS under section 194J.
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