Tds should deduct ??

TDS 1658 views 22 replies

I totally agree with rahul khatter

Replies (22)

I totally agree with rahul khatter

i agree with rahul khatter

No TDS should be applicable.

 

@ raul khatter ,

dear friend

the main problem is that the invoice contains service tax also, so the vendor is providing some sort of service whaterver the nature be.

the service  may be in the nature of royality.

no doubt, tds shall not be deducted on cost portion of the windows software.

 

Originally posted by : Digambar Kundaram

A Window software purchased by a customer worth rs. 49692/- (including service tax and vat), While making of payment towards this invoice should he deduct TDS as he received invoice with Service tax ????

 

I agree with Mr. Amit Prajapati. In this transaction a product is purchase. The customer is not receiving any personalised service. Hence it cannot be termed as a contract. TDS should not be deducted on this transaction.

Dear All,

Purchase of software is a unique transaction wherein the amount is inclusive of both VAT and service tax.

The software purchased in this case I assume is a Microsoft Open License which gives a right to use the asset to the purchaser. Hence, service tax is charged. This right to use is kind of royalty paid to the buyer. Hence, TDS @ 10% u/s 195J needs to be deducted.

Even if it is not a License, it is still a service provided directly or indirectly, since service tax has been charged, else, it would not have been charged. So, TDS @ 2% u/s 194C shall be deductible in this case.

Hope this clears all doubts.

Regards

no need to deduct TDS bcz in a FY 75000/- is exempt i.e. no need to deduct TDS up to credit of 75000/- in a FY 

according to me TDS is not required to be deducted...


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