I am working in software industry, we are buy & Selling package software, while paying to vendor we were deducting TDS@11.33%.
Now vendor is claiming, we should not deducted TDS on VAT or CST purchase only if there is service tax component in the invoice, then we need to deducted TDS@11.33%
We don't have any agreement or rate contract with vendor.
14 August 2008
In case of tailormade software Tax at source may be deducted only. Payments made for purchase of other readymade softwares are not liable for TDS.
CAclubindia
