Frequently Asked Questions

TDS (Taxes Deducted at Source), are income taxes that are subtracted from the money received at the time of making specific payments (including royalty payments to non-residents), leaving the beneficiary of the income with the net amount.

In Engineering Analysis Centre of Excellence Private Limited, the Supreme Court of India determined that payments made by resident Indian end-users or distributors to non-resident computer software manufacturers or suppliers in exchange for the resale or use of computer software are not "royalties" for the use of copyright in the computer.

A tax on the supply of goods and services is called the Goods and Services Tax (GST). It is essentially a tax on the value addition at each stage, and a supplier is able to offset this tax by using an input tax credit mechanism at each stage. Specifically, the tax paid on the acquisition of goods and services can be offset against the tax that must be paid on future supplies of those same goods and services. There are uniform laws, regulations, and GST rates in all Indian states, including union territories.

Single GST Rate for IT Software:The GST rate is 18% with full Input Tax Credit for all types of IT Software supply services, goods, media supply, electronic download, and temporary transfer of Intellectual Property (IP) (ITC).