Tds on software purchase
This query is : Open
13 July 2012
Is TDS applicable on purchase of software in light of CBDT Notification no. 21/2012 dt. 13.06.2012. In view of this, if we purchase Tally software from a vendor, is TDS applicable? Please guide.
13 July 2012
You may go through the said clause of the circular-
iii) the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
.
Further, the prescribed limit U/s 194J is 30000/- beyond which, the TDS provisions would apply.
.
However, In the light of above, you may obtain a declaration from the vendor of the intent that he has deducted TDS on payment made by him to the Software Co.
.
iii) the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
.
Further, the prescribed limit U/s 194J is 30000/- beyond which, the TDS provisions would apply.
.
However, In the light of above, you may obtain a declaration from the vendor of the intent that he has deducted TDS on payment made by him to the Software Co.
.
17 July 2012
Thanks a lot Sir. It is clear but for more clarification I wish to ask that if we purchase a software like Tally costing less than Rs 30000/- is TDS applicable? Secondly if we purchase a readymade software amounting Rs 1 Lac, is TDS applicable? Does this circular overrules any earlier decision of any authority / High Court for not deducting TDS on purchase of software, if any. Hope you don't mind answering again and clarifying me. Thanks & Regards.
27 July 2012
Please tell if it needs to withhold tax on import of computer software?
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