A software development company wants to pay another software development company. Is TDS applicable?
If some company pays to a company, is tds applicable?
Sushovan Mukherjee (6 Points)
09 February 2016Sushovan Mukherjee (6 Points)
09 February 2016A software development company wants to pay another software development company. Is TDS applicable?
CA Piyush Jhawar
(Chartered Accountant)
(545 Points)
Replied 09 February 2016
Yes rightly said above.You need to check the nature of transaction to put it under the respective section!
Sushovan Mukherjee
(6 Points)
Replied 10 February 2016
Actually these are subcontract/part of main software development work.
Rahul Verma
(CA-Final)
(484 Points)
Replied 13 February 2016
Genrally TDS having nothing to do with status. so if company is paying to another company so TDS will be applicable.
Also as u mentioned that payment is in relation with Sub-Contractor so this will be come under section of 194C and TDS will be liable to deduct @ 2%.
Sushovan Mukherjee
(6 Points)
Replied 13 February 2016
Originally posted by : Rahul Verma | ||
Genrally TDS having nothing to do with status. so if company is paying to another company so TDS will be applicable. Also as u mentioned that payment is in relation with Sub-Contractor so this will be come under section of 194C and TDS will be liable to deduct @ 2%. |
Thanks Mr. Rahul Verma, I have understood that TDS is applicable, but what will be the percentage? 2% or 10%? Because one of my client has shown me Section 194J, and they are deducting 10%. Thanks in advance.
Ashish Bansal
(CA)
(1036 Points)
Replied 13 February 2016
Rahul Verma
(CA-Final)
(484 Points)
Replied 13 February 2016
Dear
That can be different from case to case basis......
If same is covered in Sub-Contract as u mentioned Then Liable to 2%
If Same is not covered in Sub-Contract and other one holds technical competance the Liable to 10%.
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