Tds

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Our Clint is used Smart Access card Reader/ Time attendance software in factory gate and it is updated/modified by time to time. Please clarify me that is it fall under the provision of section 194J of TDS. With ref.N/N 21/2012 urgently

Replies (1)

yeah , Tds to be deducted  since your entprises is ended user

but as per point 3 mention below

the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor. - See more at:

so if tds is already deducted because of various channel  invovled, u have to take declaration

 

Read this

sale of computer software involves a channel i.e. from developer to distributor to dealer to end-user. To avoid tax deduction at several levels, CBDT issued the Notification 21/2012

As per the said notification, the tax deduction at source (‘TDS’) will not apply on acquisition of software from another person, being a resident,

  • if the software is acquired in a subsequent transfer and
  • the transferor has transferred the software without modification and
  • TDS has been deducted under section 194J or 195 of the Income tax Act, 1961 (‘the Act’) on payment of previous transfer of software


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