TDS Applicability on Software Licence, Income Tax

[Finance Team]

Hi,

We have purchased 500 Software Licence for our own use. These licence are valid for 1 yr only.

As per notification no 21/2012. TDS is not applicable only when purchased software is subsequent transfer/sale.

Whether TDS is applicable or not in our case?

Regards

Posts / Replies

[Vijay Chitte]

Yes TDS is applicable, such type of licence is for limited purpose and such software is not sold.