26 October 2012
WE MADE TO PAYMENT FOR PURCHASE OF COMPUTER SOFTWARE COST IS RS.21000/ PLS ADVISE ME T.D.S. is applicable or not if applicable so under which section we dedcut?
27 October 2012
As per Section 194C TDS is required to be deducted if payment in year exceeds 75000/- and u/s 194J TDS is required to be deducted if payment exceeds 30000/- per annum.
In my opinion If the software is customised then TDS is not required to be deducted but if the software is prepared by the software vendor i.e for tailor made software you have to deduct TDS u/s 194J of the Act.
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