22 May 2012
We purchase a software with support subscription and vendor chaged us service tax and VAT, can we deduct TDS,if yes which rate, please advice
22 May 2012
Yes, TDS will be deductible on such transaction.As in recent budget it was clarified by the FM that transfer of all or any right for use or right to use a computer software (including granting of a licence)irrespective of the medium through which such right is transferred falls under the definition of royalty and TDS will be deducted @10% u/s 194J
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