Tds deduction


Prashant Tamhane   09 October 2017

Prashant Tamhane

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Hi,

 

I am a proprietor & Tier1 partner for Lenovo Global Tech India Pvt. Ltd.

I am selling a Annual Maintenece Pack of Lenovo to a another Business Partner / Reseller & the said Business partner will sell to end user.

What will be the TDS deduction ? It will be under 194C = 1% or under 194J = 10%?

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Michelle (Service)     09 October 2017

Michelle
Service 
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I am assuming that you have a tie up with the business partner. So it could be classified as Contract which would attract provisions of 194 C

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Prashant Tamhane   09 October 2017

Prashant Tamhane

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Hi,

I have recd a mail reply from Business Partner Accounts dept as below.

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We are dealing the trading of care pack (through online key ), which is a form of software Licensing Services  & similar product which is covered under ( GST SAC Code 99733) under GST  

Hence TDS Deduction is applicable on Care Pack is same as on Software Licenses ,

Hence effective TDS Rate is 10% u/s 194j/195

for more detail , Please find  attached NOTIFICATION NO. 21/2012 [F.No.142/10/2012-SO(TPL)] S.O. 1323(E),DATED 13-6-2012

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Pls. advice.

Prashant Tamhane

 

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Michelle (Service)     09 October 2017

Michelle
Service 
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You can deduct 10% in that case since it is safer to deduct TDS at a higher rate in cases of confusion. Also note, you can claim the TDS credit next year while filing your return.


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