Tds deduction

Annu Tiwari (Company Secretary) (46 Points)

06 August 2016  

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?