Tds

But dont u think it is transfer of software covered under royalty

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.