I have purchased a software from a company which they developed from scratch. should i deduct TDS or capitalise the software?
7 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(180914 Points)
Replied 15 March 2023
If it is purchase of readymade software, no need to deduct TDS, capitalize it.
Eduworld Consultant
(5 Points)
Replied 15 March 2023
Thanku Sir. But the party has mentioned "Software Development Project" in invoice. Then also we have to capitalize it and no TDS deduction.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(180914 Points)
Replied 15 March 2023
If you have not ordered the software as per your requirement/configuration, it is not a software development which require TDS deduction. Is it the only software copy in the market, or similar copies or CDs are available off self?
sabyasachi mukherjee
(27597 Points)
Replied 16 March 2023
Services rendered for development of software is subject to tds @ 10%
BUT PURCHASE OF SOFTWARE IS NOT SUBJECT TO TDS.
BUT PURCHASE OF SOFTWARE IS NOT SUBJECT TO TDS.
Eduworld Consultant
(5 Points)
Replied 16 March 2023
Yes we have ordered the software as per our requirement and configuration.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(180914 Points)
Replied 16 March 2023
In that case TDS is deductible @ 10% under section 194J of IT act.
Lotus Agrawal
(Practice)
(1361 Points)
Replied 16 March 2023
Yes. If you have ordered the software as per our requirement and configuration then TDS shall be deducted @ 10% under section 194J.
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