Case Law Details
Kaseya Software India Private Limited Vs DCIT (ITAT Bangalore)
The issue under consideration is whether the CIT(A) is correct in stating that TDS u/s 195 applicable on software expenses without appreciating the fact that appellant was merely acting as a distributor and not having right to have a copy of the software?
ITAT states that the assessee company obtains the purchase order from the Indian Customers in respect of certain IT Monitoring Software Products of Kaseya International Limited, Jersey as per agreed price for which the assessee company is acting as a distributor for distributing keys of such software. Under these facts, in our considered opinion, the arrangement of the assessee company with its AE is of purchase of computer software at agreed price i.e. sale price to the Indian customers minus margin of the assessee company equal to 15% of cost as specified in letter. ITAT have seen that actually, it is 15% of the purchase price paid by the assessee company to its AE. In view of the above discussion, ITAT have no hesitation in holding that this fact that the assessee company is a distributor does not change the nature of the transaction and it is still a purchase as accounted for by the assessee company and these judgments followed by the AO and CIT (A) are applicable and the issue is covered against the assessee by these judgments and respectfully following the same, ITAT decline to interfere in the order of CIT (A). In the result, this appeal of the assessee is dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is filed by the assessee and the same is directed against the order of learned CIT (A) – 12 Bengaluru dated 22.02.2018.
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