Tds of software annual subscription

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.

Replies (3)
Yes TDs should not be charged
tds under 194j @ 10% will be deducted on 252000 (i.e. excluding s.tax). limit of 30000 is crossed as you are paying 252000 so tds has to be deducted...

Thank you.

Originally posted by : CA Tarannum Khatri
Yes TDs should not be charged

 

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