Tds on software development

Deferred revenue means, your customer pays you advance but you did not deliver goods and services yet. Its a liability.

TDS 194j is applicable for technical @ 2% and for professional services @ 10%. what did you pay for technical or professional? If it is inhouse development, no tds as you paid your salary.

Development costs will be capitalised

Please let us know if its consulting or salaries. Mybe you can make from this about 194j and 192b is applicable on salaries for inhouse development. forgot to mention that

technical fee 2%, professional 10% if the payment is above 30,000/-

Let’s break down the terms:

1. Professional Services:

   • These include services provided by individuals in fields such as medical, legal, architectural, engineering, accountancy, advertising, interior decoration, and technical consultancy.
   •  
   • For example, fees paid to a lawyer, doctor, or chartered accountant fall under professional services.

2. Technical Services:

   • These encompass managerial, technical, and consultancy services but do not include payments considered as salary by the recipient.
   • Technical services involve providing expertise in technology or specialized knowledge.
   • The scope of managerial services relates to running and managing the client’s business.
   • Notably, technical services must be provided by a human, not machines or robots.

3. Royalty:

   • Royalty refers to payments made for the transfer of rights or usage of inventions, models, designs, trademarks, patents, etc.

So please identify if its professional or technical consultation you've had

someone has drunk cheap liquor and got hit by summer stroke 

Someone is self-explaining here. Good progress and stops schizophrenia. 

Examples of research activities are: (a) activities aimed at obtaining new knowledge; (b) the search for, evaluation and final selection of, applications of research findings or other knowledge; (c) the search for alternatives for materials, devices, products, processes, systems or services; and (d) the formulation, design, evaluation and final selection of possible alternatives for new or improved materials, devices, products, processes, systems or services.

Deferred revenue expenditure is for research phase. This is development phase. 

Ok Mr. Sabyasachi, my sorry to you. Your correct. Deferred revenue expenditure is the nomenclature that IFRS/INDAS/AS doesn't use in the CA books and that's why I'm not aquainted with it apart from capitalisation.  After a long a long a single mistake and still 99% marks. Let's compete next time :)