Tax payable on purchase of Oracle License or Software

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2010 Dear sir,

Kindly let me know if Indian company is going to purchase or purchasing Oracle License or Software in bundle package from company outside India and while paying /settling cost of software to overseas company located in Dubai UAE will attract any TDS while remitting payment out of India. Pls, give with section ref to support this explanation

Thanks/Nandkumar

Manish V. Khatri

Manish V. Khatri (Expert)
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07 January 2010 Yes it will liable for TDS for that you can refer section 115A of the Income-tax Act, 1961 and it will liable at the rate of 30% u/s 115A(B) of the Act.

While remitting the consideration/money you have to take Foreign Remittance Certificate from the Chartered Accountant (Form No. 15CB) and same is to be informed to Income-tax Act, 1961 in Form No. 15CA (which is available to www.tin-nsdl.com website)