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
LILLY JEBASELVI (Article Assistant) (58 Points)
04 January 2010Whether 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
Amir
(Learner)
(4016 Points)
Replied 04 January 2010
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..
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 04 January 2010
It could also fall under fees for technical services...
nikhil bapat
(CA)
(212 Points)
Replied 04 January 2010
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
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 04 January 2010
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.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 04 January 2010
Ofcoarse, its just the renewal fees only, secondly, its clearly mentioned its subscripttion payments....
So, 194 C...
janani
(Student - PCC/article assitant)
(131 Points)
Replied 04 January 2010
TDS Should be deducted u/s 194C
Rajan Pasrija
(ACCOUNTANT)
(53 Points)
Replied 04 January 2010
ITS ONLY RENEWAL FEES NOT PROVIDING YOU ANY TECHNICAL SERVICE
SO IT ATTRACT 194C