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Is it deductible to TDS

mahendra sahoo (Gst Practicion) (700 Points)

28 April 2018

The asseesse is a company,
It purchased one time software rs 500000
And its installation and supporting cost is rs 100000, can we deduct TDS or not?

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19 Replies

Karan Kumar (43 Points)
Replied 28 April 2018

well as far as i knows.. software purchased is intangible asset and its installation cost is incidential expense which should be added to the cost of software and because it is intangible asset not an expenditure so liability to deduct TDS not arises..
plz rectify if i m wrong

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 28 April 2018

No TDS liability arises in this case....

Shrikanth (Company Secretary) (33 Points)
Replied 28 April 2018

This is not included in any of listing defined by tds provisions hence no tax to be deducted

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 28 April 2018

@ Mahendra Sahoo.,

What is the bill values...?
Including tax and Excluding Tax....?

No more questions about Software cost...
But, The Installation charges is considered about TDS.

2 Like

mahendra sahoo (Gst Practicion) (700 Points)
Replied 28 April 2018

Software cost 500000 installation cost and supporting exp 100000 = 600000 gst on full value

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 28 April 2018

Installation cost is liable to TDS u/s 194J

Karan Kumar (43 Points)
Replied 28 April 2018

bt rashmi mam.. purchasing software is intangible asset.. and any incidential expenses should be added to the cost of asset.. then there is no question of TDS liability.. plz clarify if i m wrong

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 28 April 2018

TDS will be applicable for the Installation Charges...

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 28 April 2018

Installation charges are in nature of professional fee & hence you have to deduct TDS on it.

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 28 April 2018

First of check out the details in Query...
In case any doubt in the Query then get the details from Querist...
After get clarity then Go to Give reply based Your knowledge with just touch with Rules and Laws...
Otherwise no need to give without understanding the Query...

It's not good for mismatching or Closing of Eyes... 😇😇😇😇😇

Karan Kumar (43 Points)
Replied 28 April 2018

ohk... yes mam u r right..
TDS should be deducted on professional charges u/s194 j then these charges should be capitalized with the cost of asset

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 29 April 2018

First of check out the details in Query...
In case any doubt in the Query then get the details from Querist...
After get clarity then Go to Give reply based Your knowledge with just touch with Rules and Laws...

Otherwise no need to give without understanding the Query...

It's not good for mismatching or Closing of Eyes...

😇😇😇😇😇