unknown (B.Com) (87 Points)
19 August 2019
Kapadia Pravin
(17259 Points)
Replied 19 August 2019
Kapadia Pravin
(17259 Points)
Replied 19 August 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 20 August 2019
1. It is prudent for any company to deduct TDS u/s 194J @ 10% if the payment for purchase towards software is made during the year and the amount exceeds Rs. 30,000.
2. However, in your case, you have mentioned as software and as well as a dongle. These are two different products which require different treatments.
3. If the nature of the product is a software (exclusively) and forms a major part of the purchase then whatever the amount that you have paid towards purchases will be considered as "Royalty" and TDS u/s 194J @ 10% is to be deducted if the amount exceeds Rs. 30,000.
4. On the other hands, if the same is in the nature of dongle which is a hardware product used as a part of a computer, will not be regarded as software. In this case, no TDS will be applicable as it will come under the sale of goods.
5. Before making a decision make sure what is the exact nature of the product and make appropriate action according to it.
Please correct me if the above solution has an alternative view.
Kapadia Pravin
(17259 Points)
Replied 20 August 2019
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