TDS on software bill

M S RAMESH (Service) (71 Points)

01 September 2009  

A bill for Rs 500000 is available for supply of software which is bifurcated as follows,

1) Software Update - 200000

2) Product Support - 200000

3) Reinstatment Fee - 100000

Service tax is charged for item no 1 and 3 and VAT for product support (item 2).

What should be TDS rate charged on the bill and under which section (194C or 194J) ?