Income Tax - No TDS on Transfer of Software - but too tedious to follow
GOVERNMENT has notified that no deduction of tax shall be made on payment by a person (the transferee) for acquisition of software from another person, being a resident, (the transferor), where-
(i) The software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,
(ii) tax has been deducted-
(a) under section 194J on payment for any previous transfer of such software; or
(b) under section 195 on payment for any previous transfer of such software from a non-resident, and
(iii) The transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
Who is going to get the benefit?
CBDT Notification No. 21/2012., Dated: June 13, 2012