Purchase of software

Queries 333 views 1 replies

Company X purchase a software from Company Y (IT Company). Company Y is on such sale charging sercive tax in its Invoice. Further Company Y is also showing Purchase Order No on the face of Invoice.

My Question is since it is purchase/ sale transaction of good. Just by showing Service tax in Invoice. Do Company X needs to deduct TDS on that amount?

 

 

Replies (1)
Yes as per amendment made by FA 2012 by adding exp. 4 & 5 to Sec.9 of IT Act, 1961, tds need to be deducted on purchase of software u/s 194J but if it a case of subsequent transfer than by applying not. no. 21/2012 tds will not be deducted


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