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TDS on software downloading

BINAYAK (Management Consultant) (104 Points)

05 March 2010

Hi,

A company is downloading software for official use. now under which section the company is liable to pay TDS??

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6 Replies

Vivek Angrish (Manager Finance & Accounts) (232 Points)
Replied 05 March 2010

In my opinion it should be U/s. 194-J

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BINAYAK (Management Consultant) (104 Points)
Replied 05 March 2010

Mr Vivek

Why u/s 194J, Its not a technical or professional service provided to the company.

the company is downloading the software electronically for one year from another company.

Vivek Angrish (Manager Finance & Accounts) (232 Points)
Replied 05 March 2010

But you tell me that whether the company will have to pay some consideration for that service or not, and if the consideration is involved, then it should be taxed

BINAYAK (Management Consultant) (104 Points)
Replied 05 March 2010

Yeah I agree with you,

but if the payment is made as an agreement for a year, so can't we deduct TDS u/s 194I ie on rent

Vivek Angrish (Manager Finance & Accounts) (232 Points)
Replied 05 March 2010

Rent is Defined in Sec.194-I "Rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any : 1. Land 2. Building 3. Land appurtenant to a building 4. Machinery 5. Plant 6. Equipment 7. Furniture or 8. Fittings, Whether or not any or all of the above are owned by the payee.