TDS u/s 194C or 194J

[Guest]

Dear Sir

Our company is going to purchase a firewall system for control of websites etc.  this product is combination of hardware & software.

Moreover also purchasing support package for one year for above product. On hardware vendor is charging VAT & on support package   charging service tax.

Query is

1. Whether TDS to be deducted  or not for support package?
2. If yes, under which section either 194C or 194J?

[MOHAN S]

If the Support package is an additional contract and is distiguished from the Supply of Hardware, in my view Tax has to be deducted u/s 194J as this is a techical service.

If the Support package is not seperable from Supply where VAT is charged, then TDS would not be applicable as the service element is not quantified. 

As you stated, you are buying Support Package seperately I am of the view you need to decut the Tax at Source u/s 194J

[DEVEN MASTER]

I am agree with Mohan S

AI Summary

TDS liability for technical support services: separately contracted support requires TDS, inseparable supply may negate TDS. Where a support package is contracted and charged separately from the hardware supply, it is a technical/service component and TDS must be deducted; if the service element is inseparable from the goods supply (VAT charged and no quantified service), TDS will not apply because the service is not separable or quantifiable for deduction.