TDS on software purchase from Foreign vendor

[Arther Kishore]

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 ?

AI Summary

TDS Not Required for Perpetual Software License Purchase from Foreign Vendor Without Indian Business Connection An individual inquired about the applicability of Tax Deducted at Source (TDS) on purchasing a perpetual software license from a foreign vendor. The vendor grants a non-exclusive right to use the software, retaining copyright and intellectual property rights, with no business connection or permanent establishment in India. The response provided suggests that if the payment is made outside India, TDS is not required in this scenario.