Regarding tds liability

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AAYUSHI KHANDELWAL

AAYUSHI KHANDELWAL (Querist)
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29 June 2013 Dear sir,

A Firm purchase software . Is there any liability of TDS or under which section?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 June 2013 No tds if the following conditions satisfied

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.

NOTIFICATION NO. 21/2012 [F.No.142/10/2012-SO(TPL)] S.O. 1323(E), DATED 13-6-2012