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Tds on software purchase

Jatin (B.Com) (473 Points)

24 June 2016

Dear Experts, Please advice me in respect of TDS deducted or not if we have purchase Software without modification. What is the treatment of Software purchase in TDS Return Thanks in advance Jatin

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 24 June 2016

Yes,deduct tds u/s 194J. But here there may be two cases:
1) If invoice has separately mentioned the service charges and software sale charges then deduct tds on service charges portion only
2) If no such bifurcation given,deduct tds on full amount.

Jatin (B.Com) (473 Points)
Replied 24 June 2016

Thank you very much for your quick reply by Mr. Harshal & Hamza Ji.

We have not dedect TDS on Loan Processing Fee (Loan taken in October, 2015)

Please note that actullay we have shift Housing Loan from ICICI to NBFC. NBFC directly cheque given to ICICI Bank towards outstanding loan amount.

Please also note that ICICI Bank Loan taken in the ratio of 4:3:3 (4th share of loan in Partnership firm, 3rd share of loan in One partner & 3rd share of loan in other partner)

Please advice me TDS deduct whole Loan Processing Fee or 4th share of Loan Processing Fee