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TDS Deduction on Accounting Software Renewal

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Account Officer
653 Points Posted on 08 May 2022
Dear Sir,

Please guide me on TDS deduction against purchase or renewal of Busy Accounting Software

Kindly also provide any Income Tax act reference on the same
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On 08 May 2022 at 11:11 Report
Replies (7)
Quick Summary
TDS on accounting software depends on nature of payment. Standard software purchase may not attract TDS, but software license, renewal, AMC or customization can fall under section 194J with TDS generally at 2 percent.

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CFO- at NHTF
58280 Points Posted on 08 May 2022
Renewal or purchase of software purchase license is covered under section 194J
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On 08 May 2022 at 11:21
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Profession Business
28207 Points Posted on 08 May 2022
Purchase of software not under sec 194J.
I STRONGLY OBJECT. PROFESSIONAL ADVICE GIVEN TO PURCHASE SOFTWARE IS COVERED UNDER SEC 194J
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On 08 May 2022 at 15:44
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CFO- at NHTF
58280 Points Posted on 08 May 2022
@ Vipul Acharya

It will come under software license .

Technical Services : 194J.

You may confirm with your vendor
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On 08 May 2022 at 15:47
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Account manager
533 Points Posted on 12 May 2022
Technical Services 194J -2%
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On 12 May 2022 at 23:12
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CFO- at NHTF
58280 Points Posted on 12 May 2022
Software license comes under section 194J purposes.

So contact service provider once
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On 12 May 2022 at 23:16
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Need help
695 Points Posted on 13 May 2022

There is no need for TDS on buying a new software or renewing the licence if it's a standard product available to all. 

But expenses for customisation or AMC will be subject to TDS.

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On 13 May 2022 at 07:57
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Senior Accountant
184 Points Posted on 09 February 2024

Dear Mr.JJJ, If you have any notification for it, Kindly give to us.

Thanks

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On 09 February 2024 at 12:25


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