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Tds on software purchased??

TDS / TCS 813 views 1 replies

Please guide me that whether TDS is applicable on Purchase of Software (i.e. Tally ERP). As the Invoice bill of Tally Solutions is as under:

Software (Tally ERP) Cost = Rs.50000/-

Service Tax @ 12.36%=Rs.6180/-

Central Sales Tax @ 5% On (50000+6180) =Rs.2809/- 

Total = 58989/-

I also want to know why the CST charged on Service tax? Whether co. can charge the tax on tax?

Please reply soon as its urgent??

Thanks in advance..

Replies (1)

Purchase of software does not bring the payment made to teh vendor in the nature of royalty.  It's just a software purchased for business use.  Hence no TDS u/s 194J would be applicable.

 


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