Answer This

Whether TDS has to be deducted on software licence renewal termed as Subscripttion payments .our client is an reseller of software.

Kindly Support your answer with case laws if any .

Thank You

Replies (20)

Yes u/s 194J

I THINK IT WILL ATTRACT TDS U/S 194 C..BECAUSE RENEWAL FEES IS JUST A KIND OF CONTRACT PAYMENT AND NOT A PROFESSIONAL FEES..

It could also fall under fees for technical services...

Yes.

U/s 194C.

License fees are generally paid under a contractual obligation. Therefore, the software license fees would be covered under Sec 194C rather than Sec 194 J, Fees for professional services. This is because no technical service is involved in mere renewal of license

Hence, in my opinion, TDS would be attracted on software renewal fees u/s 194C. Whether they are termed as Subscripttion Payments or under any other head, it does not matter since substance over form prevails

According to me also if this renewal is a regular renewal or yearly basis renewal it should be covered under section 194C but if this renewal also requires updation of software then it should be covered under 194J.

Ofcoarse, its just the renewal fees only, secondly, its clearly mentioned its subscripttion payments....

 

So, 194 C...

TDS Should be deducted u/s 194C

yes U/s 194C
yes U/s 194C

u/s 194c................

ITS ONLY RENEWAL FEES NOT PROVIDING YOU ANY TECHNICAL SERVICE

SO IT ATTRACT 194C

194 c is the answer of ur query

yes 194c

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