TDS on software purchase from Foreign vendor, Income Tax

[Amit kumar Ray]

Assessee is purchasing " Perpetual license for a single instance of CHARON-SSP/4U L30 on one host system. Includes software and license key for USD 22540. Here assessee is being treated as licensee and one License agreement is being executed. Licensor grants a non exclusive right to use the licensed functionality of the software to run a single instance. Software will be downloaded after payment.Vendor retains the copyright , intectlectual property,title and ownership of software.Vendor has no business connection or Permanent Establishment in India.

Whether TDS is applicable on payment to foreign vendor ?

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

Whether the payment has been made out of India or in India. If it is made out of India in your case no TDS is required. It is my view.