Tds on purchase of software from non-residents

Customer is not ready to accept that TDS is not to be deducted. Kindly provide your feed back asap. My Email ID spatlekar ymail.

However, in the enclosed declaration provided by the Vendor, it is not specifically mentioned that tax has been duly deducted for any previous transfer of such asset. If the vendor can provide modified declaration with specific remarks that tax has been deducted in previous transfer of such asset, then there may not be any requirement to deduct the tax.

Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Mirza says:. Share More. Tds on payment to non resident company for software purchase This query is : Resolved.

Want to know if it is standard software, can we treat it as Copyrighted article and no TDS. Again Hongkong based company does not have PE in India. What procedure should be followed by NRI Company after such tds deduction? Please suggest. Just as a printed book is a copyrighted article, a standard software i. In such a transaction, the primary object of the transaction and intention of the parties, is to avail of an article for use.

Therefore, no TDS liability arise in your case. If we treat it as copyrighted article then no tds. What would be effect on TDS? You need to be the querist or approved CAclub expert to take part in this query. Harsh Doshi 32 Points Replied 09 September Your are not logged in. More Post. India's largest network for finance professionals. Share on Facebook.

Share on Twitter. Share on LinkedIn. Share on Email. Share More. Start a discussion Unanswered Report Abuse. Reply Follow. Royalty includes payment received for transfer or granting of license for computer software.

On purchase of software from a non-resident TDS shall be deducted under section at the rates in force. But the same cannot be termed as royalty, its purely a purchase of software which doesnot involve any physcial delivery thru customs Incase if we request the other party to provide us Software CD and route the same thru custom clearance process can we get away with TDS liability??

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