TDS Deduction

This query is : Resolved

Rushikesh (Querist)
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14 August 2008 Sir,

I am working in software industry, we are buy & Selling package software, while paying to vendor we were deducting TDS@11.33%.

Now vendor is claiming, we should not deducted TDS on VAT or CST purchase only if there is service tax component in the invoice, then we need to deducted TDS@11.33%

We don't have any agreement or rate contract with vendor.

Please guide on TDS deduction.

Regards
Rushikesh.Pasar

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)
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18 August 2008 Hi,

You should not deduct tds on the purchase of software as it is not the service provided by the vendor but it is a clear cut sale & purchase.