17 December 2012
In my view TDS not required to be deducted since it is an Off the Shelf Software. It is a simple transaction of sale. Views of other experts awaited.
Finance Act 2012 has amended the definition of “royalty”. The amendment in section section 9 (1) (vi) now defines ‘royalty’ as any ‘right for use’ or ‘right to use’, a computer software (including granting of a license), irrespective of the medium through which such right is transferred.
Section 194J provides for deduction of tax at source on payment of professional fees, technical fees, directors remuneration and royalty payments
Hence payments towards right to use computer software will be liable to tax deduction at source under section 194J @ 10%
17 December 2012
Agreed with above opinion..... Purchase of Licenced version of any software covered by sec 194J, hence TDS will have to deducted provided other criteria of 194J are fulfilled...
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