TDS on Annual Software Charges to Non Resident Company

Anand (Practicing CA) (190 Points)

21 February 2011  

Dear All

One of my client is paying software charges to Non Resident Company. 

The software charges are paid on annual basis in the form of fees for use of teh software.

I would like to know whether my client is required to do TDS of the non Resident U/S 195 or it will be treated as Purchase transaction and hence non TDS is required to be deducted from payment beign done so.

Thnx in Advance.