Tds for software

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2011 We have purchased a software to ( Mr. X Co.) this year(A.y. 2012-13) which Invoice Value mention below:

Software price 300000.00
Add: Service Tax 30900.00
Add: CST 6000.00
Total 336900.00

Please Explain us that can we deducted TDS against this Invoice. If We deducted TDS then What Section Code will be applicable for this Amount which given above.

Also said that if TDS applicable then TDS Deducted against Which amount for this case (Rs. 300000 or Rs. 336900)

U S Sharma

U S Sharma (Expert)
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30 August 2011 depends on the nature of accounting where you are going to put the payment, if its capitalized, then NO TDS

if its to be treated as revenue expenditure then 194J applicable on gross amount paid.