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TDS on software purchase from the vendor

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If we purchase any software from the vendor (resident), TDS will be applicable or not ?
Replies (5)
Yes. It is applicable
Yes, general TDS will applicabe on such purchase.

Furthermore, There is an exemption available as per below notification issued by CBDT:
Notification number 21/2012 dated 13.06.2012


No TDS u/s 194J on Payments for Software Purchase

As Per notification no. 21/2012 dated 13.06.2012 no deduction of tax shall be made on the following Payment by a person (hereafter referred to as the transferee) for the acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where-

(i) The software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,

(ii) Tax has been deducted-

(a) Under section 194J on payment for any previous transfer of such software; or

(b) Under section 195 on payment for any previous transfer of such software from a non-resident, and

(iii) The transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.

 Yes,You can deduct tds u/s 194J @ 2% , In Techinal Services.

Tds on Software lince will be covered under profession.

194J as said by above members
For consultancy and professional fees it's OK but not on purchase.


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