TDS on payment to resident for the purchase of ERP software

This query is : Resolved

hiren (Querist)
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28 March 2009 Hello,
gentlemen i want to ask that any clear point of view is there for deducting or not deducting TDS on payment made to ERP vendor for purchase of ERP Package.
Whatever the answer pls give the clear cutinterpretation of law

Hoping to get your favorable response,
regards,
CA Hiren Sheth

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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28 March 2009 if you are purchase erp package & vendor charged vat on purchase then no tds is to be deducted & if annual maintenance contract is there & payments are more than 50000/- in the
or rs 20000/-or more at one's time then tds is to be deducted

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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28 March 2009 No need to deduct TDS, as it is normal purchase transaction. TDS will be deducted only if there is contract between you and the seller for purchasing the softare.

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