Tds on software purchase

TDS 15980 views 7 replies

If we buy software with VAT alone, is it applicable for TDS?

 

 

Replies (7)

No. TDS is not applicable. Such a transaction is a pure purchase.

 

Regards,

Devendra Kulkarni

No, TDS is not applicable...

Not Applicable Because That transaction is Purly purchase of Software. TDS Applicable only on Service.

Allready Devendra other friends are told

TDS is not applicable.

if it is customised software then you need to deduct tax @ 10%

 

Dear

Kindly Refer

C.B.D.T has issued a Notification No. 21/2012 [ F. NO. 142/10/2012-SO (TPL)] S.O. 1323(E) dated 13-6-2012  which comes in to force from 1-7-2012  provides that no deduction of tax on software shall be made on the following specified payment under section 194J of the Act, namely:-

 

Payment by a person (hereinafter referred to as the transferee) for acquisition of software from another person, being resident, (hereinafter referred to as the transferor), where-

  1. the software is acquired in a subsequent transfer and the transferor has transferred the software without modification,
  2. tax has been deducted-
    1.  under section 194J on payment for any previous transfer of such software; or
    2. under section 195 on payment for any previous transfer of such software from a non-resident, and
  3. The transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) along with the Permanent Account Number of the transferor. 

 

Further Refer amendmend in budget Finance Act 2012 in Clause 9 (1) (V) & (Vi) also read explanation 6.

 

So it is advisable to deduct Tax @ 10%.

 Regards

 

Vishal

If a Bill of software Purchase for an amount of Rs.75000/- without any breadk up is there, are we supposed to make TDS?


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