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tds on licence

nikhil bhudolia (CA FINAL) (109 Points)

14 November 2018

Dear sirs
we have purchsed one software which has been licensed for 12 months

so i want to know tds deucted u /s 194j or 194c

and this is not a customised software..This is on the sheel purchased software

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7 Replies

rahul (a) (1620 Points)
Replied 14 November 2018

please mention amount and software name

nikhil bhudolia (CA FINAL) (109 Points)
Replied 14 November 2018

472000 and name is Phoenix wiNonlin

Nitesh bind (Student CA Final ) (12692 Points)
Replied 14 November 2018

TDS would be Deducted @ 10% Under Section 194J.

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nikhil bhudolia (CA FINAL) (109 Points)
Replied 14 November 2018

but the Payee has given Nil tds declaration in his letter head what to do....whether we zhould accept his declaration

Nitesh bind (Student CA Final ) (12692 Points)
Replied 14 November 2018

See Deduction of TDS is the Liability of DEDUCTOR (i.e. Payer) and not of Payee. Therefore if there is any default then Payer would be responsible for the same.

Further any simple declaration should not be entertained as VALID REASON for non Deduction of TDS and later on you may face penalties for u/s 201(1).

Further if Payee even Give you form 15G even that can't help you here because the total income which is to be paid must be below Exemption limit and here you are paying 4,72,000/- and also 15G can't be given by FIRMS & COMPANY. Also it can't be given for Section 194J and even for 194C as well.

Therefore, you being the Deductor must Deduct the TDS otherwise you'll have to face the consequences.

Thanks.

5 Like