Tds on purchase of software from us

I have purchased a software for data management system from US. It is on shelf software and no online data is maintained by software provider. Whether tds is to be deducted for the same?

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The division bench of Karnataka HC has held that persons making payment for purchase of software from non-resident vendors are legally obliged to withhold tax from such payments irrespective of the fact that the recipient is/is not obliged to pay tax in India.

Ref : The Commissioner of Income-Tax, International Taxation and The ITO TDS-I v. Samsung Electronics Co. Ltd, India Software Operation

 

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