Tds on import of software licence

I am not sure whether TDS On same is to be deducted or not. If yes then under which section. What will be the accounting treatment ie. There is no need to Detucted tds on Purchase on Software and treated as a expendoture, not capatilised.

Refer Section J r. Section J is attracted when payment is made for royalty. In exercise of the powers conferred by sub-section 1F of section A of the Income-tax Act, 43 of , the Central Government hereby notifies that no deduction of tax shall be made on the following specified payment under section J of the Act, namely Payment by a person hereafter referred to as the transferee for acquisition of software from another person, being a resident, hereafter referred to as the transferor , where-.

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. The assessee submitted that in the light of the judgment in case of John Deere India Pvt. Welspun Corporation Ltd. He had made the aforesaid payments for the acquisition of software licenses, wherein the assessee had acquired copyrighted article and hence, such payments were not taxable as royalty in India, as per DTAA between India and Singapore.

He stated that no requirement to deduct tax out of such payments and hence, the assessee had not defaulted. In relation of tax deduction at source TDS out of training charges paid, he referred to the provisions of section 9 1 vii of the Act pointed out that it refers to managerial services and once it is not covered by DTAA , then it would become business income in the hands of assessee.

He further pointed out that since all these concerns had no Permanent Establishment PE , then there no business income arises in India and in the absence of any PE, there was no question of any taxability under Article 7 of DTAA. Check your mailbox for the joining link. From Bhawna Agarwal: [email protected]. Sign in. Password recovery. Forgot your password? Get help. Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

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