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%?
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
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
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.
CAclubindia
