Tds rate on purchase of computer software

 

WE HAVE PURCHASE A SOFTWARE LICENCE AMOUNTING Rs. 1 LACS PARTY CHARGES VAT & SERVICE TAX BOTH.

SUGGEST WE HAVE TO DEDUCT TDS ON BILL OR NOT?

Replies (1)
Originally posted by : Neeraj Kumar Saini
 WE HAVE PURCHASE A SOFTWARE LICENCE AMOUNTING 1 LACS PARTY CHARGES VAT & SERVICE TAX BOTH.
SUGGEST WE HAVE TO DEDUCT TDS ON BILL OR NOT?

TDS to be deducted u/s 194J as it includes royalty payment for a licence.


“royalty” means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head “Capital gains”) for—

       (i)  the transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property ;

      (ii)  the imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property ;

     (iii)  the use of any patent, invention, model, design, secret formula or process or trade mark or similar property ;

     (iv)  the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill ;


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