A Company(XYZ Ltd.) is purchasing software electronic licence (example:Microsoft licencing, Adobe etc.) from a distributor (say Redington) to supply to one of it's clients(i.e client of XYZ Ltd.) So the chain goes like this:
OEM Main Company(say Microsoft)---------->Distributor(Redington)------->XYZ Ltd.------>Client company of XYZ Ltd.
TDS already deducted by Distributor on main Company. The query is whether TDS shall be deducted by the client company on XYZ Limited. If yes, at what rate?
Yes TDS will be deducted by the client company @ 10% u/s 194J
Thanks...can u throw some light on the details please...actually TDS has already been deducted by the distributor company on Main company
As per Sec 194 J TDS has to be deducted by any person other than Individual/HUF responsible for paying fees for Professional/Technical Services if it exceeds Rs. 30000.Fees for Technical services includes transfer of rights including granting of license.The rate applicable is 10% and 20% in case pan no. is not provided.
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