Job
91 Points
Joined December 2007
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-
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the software is acquired in a subsequent transfer and the transferor has transferred the software without modification,
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tax has been deducted-
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under section 194J on payment for any previous transfer of such software; or
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under section 195 on payment for any previous transfer of such software from a non-resident, and
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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