Tds on software

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articleship
78 Points Joined July 2009

What is the TDS implication on purchase of software in GST regime?

I have purchased software(without any modification) from a vendor who deals in readymade software,whether I am required to deduct TDS on the same.

According to the Vendor no TDS is required to be deducted as it comes under Goods in GST,Is he right?

Please Explain.

 

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On 23 March 2018 at 19:11 Report
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"Do the Right Thing...!!!"
128116 Points Joined January 2015
Yes... He is exactly right...
It's supply of goods... Not a service...

In case he ll charge any Installation and Services then You ll consider these are under Service except Software Purchase
1 Reply
On 23 March 2018 at 19:33
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Accountant
56 Points Joined August 2015
Yes ! Becoz on software we can't deduct tds.
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On 23 March 2018 at 19:35
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GST Practitioner
55062 Points Joined June 2017
No there is no TDs on software purchase
2 Reply
On 23 March 2018 at 20:19
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Practicing in GST and MSME
1985 Points Joined September 2010
as per my view, tds @ 10% is to be deducted u/s 194J. but if supplier claims benefit under notification 21/2012 of income tax , then only tds need not to be deducted.

kindly rectify me if wrong with exact section or rule.
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On 23 March 2018 at 21:33
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"Do the Right Thing...!!!"
128116 Points Joined January 2015
194J. Fees for professional or technical services.—(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a)  fees for professional services, or

(b)  fees for technical services,



@ MR. CA SUNNY AGGARWAL.,
I don't want details for the section...
I just want the explanation of the word of "FEES".
2 Reply
On 23 March 2018 at 21:41
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Article Assistant
411 Points Joined August 2016
1)As per GST no TDS provisions Applicable now
2) As per Income Tax TDS on software purchase is liable to deduct u/s 194J, TDS is not liable when
a) Software purchased is without modifications
b) Vendor already deducted TDS when he purchased
c) buyer obtains declaration from vendor
I think CA Sunny sir has mentioned the notification which deals about above conditions

As per schedule II in GST any activity related to software is service
1 Reply
On 24 March 2018 at 08:51
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Practicing in GST and MSME
1985 Points Joined September 2010
Agree with Uday ji.
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On 24 March 2018 at 12:31
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articleship
78 Points Joined July 2009

Thanks for the valuable suggestions.

In short what i understand is that if the vendor provides me with the declaration that TDS has been deducted earlier,then I am not required to deduct TDS on the purchase of the software.

And if vendoe does not provide me with declaration then I am required to deduct TDS on the purcahse of the above software.

Kindly correct me IF I am wrong

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On 24 March 2018 at 16:11
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"Do the Right Thing...!!!"
128116 Points Joined January 2015
Dear Rishabh Khaitan., Wait on Our Experts will reply to You...
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On 24 March 2018 at 16:14
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"Do the Right Thing...!!!"
128116 Points Joined January 2015
Also will PURCHASE (one client) a TALLY SOFTWARE GOLD USER and Rs. 63720 + GST... After experts reply I'll give options to the client...
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On 24 March 2018 at 16:19
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GST Practitioner
55062 Points Joined June 2017
Development of software is fall under the service

software in physical form (ready made) falls under teriff act under HSN code 85238020 , so it's goods

@ Raja sir is correct it's fall under goods
& no TDs is to be deducted
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On 24 March 2018 at 20:30
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Clerk
22 Points Joined May 2019
Sir, Should we Deduct TDS on Tally software purchased?
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On 19 July 2019 at 18:59
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Accountant
56 Points Joined August 2015
So, what's the final
i also want to know if i get in this situation in future....
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On 19 July 2019 at 19:12
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"Do the Right Thing...!!!"
128116 Points Joined January 2015
Originally posted by : Sujit
Sir, Should we Deduct TDS on Tally software purchased?

 

NO... NO NEED.

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On 19 July 2019 at 19:16


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