TDS on Software Licence

Hi

We have Purchased Software Liacence from USA from Foreign Company and sold it in India

Whether TDS is appliacable?

Under which section TDS would be applicable?

If Yes do we get DTAA Benefit? What would be TDS % after DTAA or we need to cite the DTAA clause.

 

Pl advice.

Replies (3)

it is a case of Cap. gain, no TDS will be deducted.(extinguishment of rights)

it will not be a capital gain... it depends on how u treat the software as a stock or as capital good... however in both the cases tds is not payable

Originally posted by : CA Jitendra Jain

it will not be a capital gain... it depends on how u treat the software as a stock or as capital good... however in both the cases tds is not payable

That's Right! I am tottaly agree with you Jitendra.

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