Guys just help me on this query
a company have purchased a software from a purchaser which is not an application software. does the company need to deduct any tax under sections 194c or 194J as per Income Tax Act or else any another section??????
5 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2010
software purchase amounts to goods purchase, no TDS applicable !!
Devendra
(Chartered Accountant)
(4775 Points)
Replied 29 December 2010
It is regular purchase of Software, therefore no question of TDS arises.
Chinmay
(Accounts Professional)
(356 Points)
Replied 29 December 2010
Yes Agreed with my friends......
But the subscripttion charges attracted TDS
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 December 2010
TDS on software payments would not be applicable if its purchase of a software product, be it a customised / branded software... If the payment is for services received from a software company for development of software, then provisions of Section 194J may apply and the tax rate is @ 10% plus Edn. cess.
prateek rijwani
(Industrial Trainee)
(125 Points)
Replied 30 December 2010
| Originally posted by : U S Sharma | ||
 |
TDS on software payments would not be applicable if its purchase of a software product, be it a customised / branded software... If the payment is for services received from a software company for development of software, then provisions of Section 194J may apply and the tax rate is @ 10% plus Edn. cess. |
 |
agreed with esteemed member............................
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