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??????
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??????
software purchase amounts to goods purchase, no TDS applicable !!
It is regular purchase of Software, therefore no question of TDS arises.
Yes Agreed with my friends......
But the subscripttion charges attracted TDS
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.
| Originally posted by : U S Sharma | ||
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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. |
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agreed with esteemed member............................
CAclubindia
