Whether TDS is deductible on purchase of Antivirus Software? Whether it is covered under royalty for transfer of Software?
PRIYANKA
(CA FINAL)
(142 Points)
Replied 13 September 2013
But dont u think it is transfer of software covered under royalty
Siddharth
(Student)
(128 Points)
Replied 13 September 2013
Hi,
If you purchase a software from a non resident/foreign comapny then TDS should be deducted under 194J as it is a right to use (royalty).
TDS need not be deducted if it is a transfer between residents as it is not the first or real transfer(subsequent transfer) and so royalty doesnt arise.
You can go through notification number 21/2012 dated 13.6.2012.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
