Tds on softwarte upgradation

683 views 3 replies

CA Akhil Mittaal

B.Com(h) SRCC

2159 Points Joined March 2009

Dear all,

I have purchased a software for upgradation of the system ( related to manufacturing- IT related)... But while making payment i didn't deduct TDS..Now following are my queries:

1. Vendor saying i inoviced ( basic Value + CST), so NO TDS is applicable.He will be generating seperate invoice for the services he will render.

2. Now whether TDS is applicable on the upgratdation of the system....!!!

3. He imported software and he had not deducted TDS u/s 195... Please guide me in this regard.

Urgent pls reply...

Thanks & Regards

Akhil

Replies (3)

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Joined June 2010

Please refer to this link

/forum/tds-on-software-purchase-250415.asp#.UtVOq_QW1AQ

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Joined June 2010

By this notification it clear that one time TDS will be deducted either by you or by ur importer which is said in clause ii(a) or (b) read with (iii).

Since in ur case the improter has not deducted TDS U/S 195 hence he has to deduct the TDS.

Read carefully please

i) the software is acquired in a subsequent transfer and the transferor has transferred the software without 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) along with the Permanent Account Number of the transferor.