If you were subscribing to a product for a fixed period online ( electronic subscripttion- service tax charged by company), would you be liable to deduct TDS on it?
4 Replies
Santosh Tiwari
(Practice)
(21 Points)
Replied 21 December 2010
YES. Subscripttion for software is liable for deduction of TDS at the rate applicable for professional services. In case of to be capitalised software purchase also, it is better to deduct TDS.
Rahul
(Student)
(112 Points)
Replied 22 December 2010
Any case law or specific section to quote with your answer?
Abishek
(Student)
(1108 Points)
Replied 22 December 2010
Tds is deductible only for expenses Dr to p/l account . when you purchase a software which is to be capitalised , no need of deducting Tds.
Santosh Kumar Sabat
(CA - Practice)
(33 Points)
Replied 01 January 2011
Shall I deduct TDS U/s 195 of the IT Act, on payment made for purchase of Software licence for 3 years from Ireland of USD 27,020.
santosh
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