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Should tds b deducted?

TDS / TCS 1229 views 5 replies

 i am an article doing audit of a partnership firm these days. the concern has got their website prepared by a concern and paid it Rs.25000 for that and thereafter they had few more transactions with that regarding uploading etc. can u pls guide me that should our client deduct tds on that? wil it be covered under CONTRACT?
Thank you

Replies (5)

in my view, its a contract payment and accordingly TDS rates of the payment to contractor shall apply as the situation is not covered under the 'professional and technical services' head........................

thnx ashish..

Is the company who has supplied the software not regular in developing and supplying softwares? In case its main business is developing and supplying software, it will be regareded as professional service and tds will hav to be deducted as per rates in 194J. else it will be covered under contract.....

i got ur pt. sir..thk u so much

Pls read Explanation 2 to section9 of the Income tax act for the meaning of "technical & Professional services)


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