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 on cross-border software license payments: no withholding where payment is made outside India, per view.
Whether TDS applicability arises on payment for a perpetual foreign software license depends on the payment's origin; the advisor's view is that if the consideration is paid from outside India, no withholding is required, given the vendor retains intellectual property and lacks a permanent establishment or business connection in India.