T.d.s.

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satish (Querist)
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27 October 2012 WE WANT TO MAKE A PAYMENT FOR PURCHASE OF SOFTWARE FOR Rs. 210000/ HE HAS CHARGED SERVICE TAX ALSO , PLS. ADVISE ME T.D.S. APPLICABLE OR NOT? IF APPLICABLE UNDER WHICH SECTION SHALL WE DEDUCT?

V K Bajaj

V K Bajaj (Expert)
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27 October 2012 You say it is a PURCHASE of software. Also you say the seller is charging Service Tax.
So both these are not correct. Service Tax is applicable on Services rendered. On Purchases VAT is applicable and not Service Tax.

Now if service tax is charged then it means services has been rendered. Deduct TDS on the amount before service tax.

Section depends upon the nature of service. Seems it is PROFESSIONAL SERVICES.