Company has paid Rs.1,00,000-00 ( Service Tax of Rs. 10,300-00 extra) for software licence renewal, whether i have to deduct TDS on that? if, what rate, please can any one explain. please...
31 January 2011
In the case of any software only the license is given for the use of the software. It has been clarified by the Supreme Court of India, in the case of TCS V State of Andhra Pradesh (2004) 271 ITR 401 (SC) that granting of such licenses for the use of software is in the nature of a payment for a copyright. In such a transaction, the primary object of the transaction and intention of the parties, is to avail of an article for use.
26 June 2012
This is a usage-based payment made by one party (the "licensee") to another (the "licensor") which is called 'royalty' and accordingly section 194J attracts.
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