Anand (Practicing CA) (190 Points)
21 February 2011Dear All
One of my client is paying software charges to Non Resident Company.
The software charges are paid on annual basis in the form of fees for use of teh software.
I would like to know whether my client is required to do TDS of the non Resident U/S 195 or it will be treated as Purchase transaction and hence non TDS is required to be deducted from payment beign done so.
Thnx in Advance.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 10 May 2011
Ideally there should be no TDS in the present case but the Department is hell bent to treat these transactions as royalty.
So unless some clarification comes from Dept or some SC judgement, I shall advice to deduct TDS.
Anmuj
0-9810106211
Excel Mastery Program
CAclubindia
