Tds of software annual subscription

Tushar (Founder) (63 Points)

19 August 2014  

Hi,

      I am purchasing a Software Subscripttion which costs Rs. 2.52L annually and the service provider has informed me that there will be 12.5% Service Tax and 10% TDS. So the calculation according to me goes like this.

Cost - Rs. 2,52,000

Service Tax - Rs. 31500

Total - Rs. 2,83,500

TDS - (Rs. 2,83,500 * 10%) = Rs. 28,350.

So if I'm not wrong, TDS should not be charged to me, as its within the limits of Rs. 30,000. 

Need help in this regard. Thanks.