TDS

I want to know that whether software purchase from a party, which is liable for vat as well as for service tax as per CBEC notification, payment made to the party against such purchase is subjected to TDS or not or if yes then under which section of TDS. Pls give your valuable advice.
Replies (5)

Hi Friend,

How come Service Tax & Vat can be levied simultaneously. It is either VAT or Service Tax in one particular bill depending on nature of sales. I mean Vat for Goods Selling & Service Tax for Service selling. As in your query, there is a selling of Capital Goods like Software for which depreciation is charged @ 60% & 40% in Income Tax & Companies Act respectively.Therefore there will be no TDS on Sundry Debtor's part but if it is a selling of Service for example Customised Software preparing under contract or installing Software or imparting trainning on Software then there will be TDS @ appropriate rate under 94J or 94C that too if single or aggregate payment crosses the limit under above sections. I hope I could be able to answer your query properly.

D Sen

Thanks for your opinion, as i mentioned in my post vat and service tax both are possibe as per CBEC notification. so in that case is it possible to deduct TDS while making payment to supplier.for your information first i purchased the software and then i sell it other's. now in that case what is your opinion.
NO
IF THE SOFYWARE IS DESIGNED FOR ESPECIALLY YOU THANT TDS SHOULD BE THERE RECTIFY ME IF I AM WRONG

if the company is in the work of developing the software as in that case only service tax is applicable .but in ur case tds is not deducted.

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