Tds on ms office standard licence

This query is : Resolved 

17 December 2012 Hi,

Can anybody confirms the applicability of TDS on MS Office Standard Open Licence.

The Vendor Charged Service Tax & VAT both on the above description and the value of the same is 5 lakh.

Thanks.

17 December 2012 In my view TDS not required to be deducted since it is an Off the Shelf Software. It is a simple transaction of sale.
Views of other experts awaited.

17 December 2012 Hi Sanjay,

Whether below definition applicable for this?

Finance Act 2012 has amended the definition of “royalty”. The amendment in section section 9 (1) (vi) now defines ‘royalty’ as any ‘right for use’ or ‘right to use’, a computer software (including granting of a license), irrespective of the medium through which such right is transferred.

Section 194J provides for deduction of tax at source on payment of professional fees, technical fees, directors remuneration and royalty payments

Hence payments towards right to use computer software will be liable to tax deduction at source under section 194J @ 10%


17 December 2012 In case you are buying license this rule will apply and TDS will have to be deducted u/s 194J.

17 December 2012 Agreed with above opinion.....
Purchase of Licenced version of any software covered by sec 194J, hence TDS will have to deducted provided other criteria of 194J are fulfilled...

Rgds,
CA Hiren Thakkar



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries