tds on licence

please mention amount and software name

472000 and name is Phoenix wiNonlin

TDS would be Deducted @ 10% Under Section 194J.

but the Payee has given Nil tds declaration in his letter head what to do....whether we zhould accept his declaration

See Deduction of TDS is the Liability of DEDUCTOR (i.e. Payer) and not of Payee. Therefore if there is any default then Payer would be responsible for the same.

Further any simple declaration should not be entertained as VALID REASON for non Deduction of TDS and later on you may face penalties for u/s 201(1).

Further if Payee even Give you form 15G even that can't help you here because the total income which is to be paid must be below Exemption limit and here you are paying 4,72,000/- and also 15G can't be given by FIRMS & COMPANY. Also it can't be given for Section 194J and even for 194C as well.

Therefore, you being the Deductor must Deduct the TDS otherwise you'll have to face the consequences.

Thanks.

Yes Truely said Nitesh..

Thanks Nitesh

but suppose if there is Some Terms & Conditions imposed by Party than Tds will be Deducted u/s 194C right...Please Clarify