26 June 2012
Can any one proide us the clarificaiton on the NOTIFICATION NO. 21/2012 [F.No.142/10/2012-SO(TPL)] S.O. 1323(E), DATED 13-6-2012 of income tax.
26 June 2012
No deduction of tax shall be made on the following specified payment under section 194J of the Act, namely:- Payment by a person (hereafter referred to as the transferee) for acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where- (i)the software is acquired in a subsequent transfer and the transferor has transferred the software without any modification, (ii)tax has been deducted- (a) under section 194J on payment for any previous transfer of such software; or (b) under section 195 on payment for any previous transfer of such software from a non-resident, and (iii)the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
Dear user, notification states that if a person is purchasing the software and tax is deducted by such purchaser.The software is sold further without any modifcation then there will not be any TDS.This is because the person purchases and sells the software and no technical or professional service is provided.
CAclubindia
