Tds

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2013 If I import a licensed software from a company who has no permanent representation in India, and then further sell it as is as a distributor, if applicable, what will be the TDS rates?

Guest

Guest (Expert)

25 December 2013 Read section 115 A..Treated as a Royality and TDS is deducted at 10 percent.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

25 December 2013 If I may also ask - I may not be able to deduct TDS of the foreign vendor.

Some of my retail customers are individuals who will not cut the TDS. What happens in this scenario?

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Guest

Guest (Expert)

25 December 2013 Show the amount as gross amount and pay the amount of TDS from your own pocket now.
For Example if u have paid 100000Rs to a foreigner Show it as 100000/90% Rs111111 as royalty and pay TDS of Rs 11,111.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2014 Thanks for all the prompt replies.

One more question with respect to the same:
The software is not modified by me - Do I apply only the 5%VAT or also service tax also on the license-boxed software?