If we buy software with VAT alone, is it applicable for TDS?
7 Replies
Devendra
(Chartered Accountant)
(4775 Points)
Replied 24 May 2013
No. TDS is not applicable. Such a transaction is a pure purchase.
Regards,
Devendra Kulkarni
S.Satya
(CA-FINAL STUDENT)
(68 Points)
Replied 24 May 2013
Not Applicable Because That transaction is Purly purchase of Software. TDS Applicable only on Service.
Allready Devendra other friends are told
CA Shabeer
(CA, M.com)
(297 Points)
Replied 25 May 2013
if it is customised software then you need to deduct tax @ 10%
vishal
(Job)
(91 Points)
Replied 25 May 2013
Dear
Kindly Refer
C.B.D.T has issued a Notification No. 21/2012 [ F. NO. 142/10/2012-SO (TPL)] S.O. 1323(E) dated 13-6-2012 which comes in to force from 1-7-2012 provides that no deduction of tax on software shall be made on the following specified payment under section 194J of the Act, namely:-
Payment by a person (hereinafter referred to as the transferee) for acquisition of software from another person, being resident, (hereinafter referred to as the transferor), where-
- the software is acquired in a subsequent transfer and the transferor has transferred the software without modification,
-
tax has been deducted-
- under section 194J on payment for any previous transfer of such software; or
- under section 195 on payment for any previous transfer of such software from a non-resident, and
- The transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) along with the Permanent Account Number of the transferor.
Further Refer amendmend in budget Finance Act 2012 in Clause 9 (1) (V) & (Vi) also read explanation 6.
So it is advisable to deduct Tax @ 10%.
Regards
Vishal
Chandra Mohan
(Practicing Professional Semi Qualified)
(506 Points)
Replied 02 May 2014
If a Bill of software Purchase for an amount of Rs.75000/- without any breadk up is there, are we supposed to make TDS?
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