We have purchased windows license from Microsoft singapore. they have obtained PAN in india. they have raised invoice in INR and requested us to make payment to a party in india which may be their agent in India.
Whether section 195 is attracted or simply 194J is sifficient? pls let me know any other compliance also in case required?
Regards
Aniruddha Sathe
I think if the billing address of supplier is located in India i.e. if Microsoft have mentioned the agent address on bill & u hv to pay in Indian Currency then tax deduction have to be made u/s 194J
Understnding of the case:
Your company has re purchased packaged software from an agent located in India who have purchased it from Singapore based person.
Opinion:
TDS will not be applied as per notification no. 21/2012 dated 13/06/2012 subject to fulillment of conditions as mentioned in the notification.
If any of the conditions are not fulfilled, then section 194J will be triggered.
Sir Modi,
In the above case if they purchase directly from microsoft india, will it attract tds.??
Modi sir,
In this case, we have purchased from Microsoft directly. Billed by their singapore company. only while dischrging the liability they have requested us to make payment to their indian party located near Delhi.
microsoft has taken Indian PAN also.
In my opinion 195 will be attracted as in substance, we are purchsing windows from them directly. they have raised invoice on us in INR.
pls advice
Apply the same ratio keeping in mind following things:
Microsoft India is a private limited company registered in India under the name Microsoft Corporation (India) Pvt. Ltd. Compny is a separate legal person under the law.
It deals with sales and marketing operations for Microsoft's software products in India. Microsoft India sales the software upon importing from its parent company.
Dear Sathe,
If name of the biller printed on bill is Micosoft - Singapore, section 195 will apply. Request of the seller to make payment in India is irrelavant.
CAclubindia
