CA L. Ram Kumar (asst manager) (42 Points)
17 August 2011Hi member!
My question is Whether software maintenance charges paid to vendor will attract tax deduction norms at 2% or 10%.
one of my vendor (firm) is providing software maintenace. he issued service tax invoice for maintenance charges.
Regards
CA. L Ram Kumar
Pragnesh
(AM - Taxation)
(1259 Points)
Replied 17 August 2011
In Routine, normal maintenance contracts which include supply of spares will be liable to TDS u/s. 194C. however, where technical services are rendered, TDS will be u/s. 194J. For further detail pls. refer Circular no. 715 : 215 ITR.
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