Sec 195 (urgent)

This query is : Resolved

naga raju (Querist)
Follow

30 November 2012 Dear Sir

One of our client purchased software product.

Whether he wants to deduct Tax on payment or not (TDS)

Thanks & regards
Nagaraju G

V K Bajaj

V K Bajaj (Expert)
Follow

30 November 2012 Mr Raju

Very simple logic is that TDS is applicable if any income is passed on. So on purchases TDS is not applicable.

contact@vkbajaj.co.in

Message likes : 1 times

MEHUL SHAH

MEHUL SHAH (Expert)
Follow

01 December 2012 According to recent amendment , Software comes under the definition of royalty and in case of royalty , TDS is deductible irrespective of whether there is any business connection or not.

You can take the benefit of DTAA.

In case of further query contact at mehul@raseshca.com

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!