07 October 2008
Dear Sir/Madma. I am an accountant in forbes ltd co.(Its an IT Co.) My Query is every month we pay Rs. 100000/- as Software Development Charges and we deduct T.D.S u/s 194 J. Now we have been informed that the charges should be taken under Work in Progress as it is for the development of Software and once the software is developed it should be capatilised and depreciated accordingly. I would like to know whether i should deducted TDS on software develpment charges as i show it under W.I.P in my books of account.
07 October 2008
the deduction is made from the creditors income and remitted to the department. whether u put the same to use now or later is of least significance as far as deduction of tax is concerned
CAclubindia
