We have been using the U.S. Software in India, paying annual fee for subscripttion of software.
Here TDS is not applicable because it is other services
Now , do we need to issue the 15CB OR 15CA Part A /D??
As per the provisions of the Income Tax Act, TDS is applicable on payments made to a non-resident for services rendered in India or for services that are utilized in India. However, there is a specific provision under Section 9(1)(vi) of the Income Tax Act that exempts payments made for the use of computer software from TDS, provided that the payment is not in the nature of royalty or fees for technical services.
If the annual fee paid for the subscripttion of software is for the use of the software and does not involve any transfer of technology or technical knowledge, then it may not be considered as royalty or fees for technical services, and TDS may not be applicable.
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