Hi,
suppose Co. "A" has purchased a computer software from Co. "B" and B is his invoice put the wording "cost of licence fees of certain software module installed on server", and charges VAT on it.
Apperently it seems that no TDS would require to be deducted................
But Co. "B" is also providing free of cost maintenence for certain period & also doing certain specific taylord customisation and maintenence in software module as per Co. "A" requirement within and also beyond that maintenence period.
Now in this senario whether TDS would lible to be deducted on his bill, as venodr is also doing specific taylord customisation and maintenance free of cost and,
whether it purely menas that he has already charged these cost in his original billing under the nareation as "cost of licence fess" and chrarged VAT only.
whether by setting the neration and charging according tax, any one can bypass the TDS laws.
it is to be also cleared at this point of time that Co. "A" & "B" are not related party and dealing at arms length.
Pl Reply
Thanks in advance.
CAclubindia
