TDS on purchase of licensed software cannot be made retrospective

Acer India Private Ltd. Vs DCIT (ITAT Bangalore) Conclusion: The decision holding that the payments made for purchase of software was in the nature of royalty came to be pronounced on 15.10.2011. Accordingly, assessee could not be treated as an assessee in default for not deducting TDS under section 195 in respect of payments made for purchase of licensed software prior to 15.10.2011. Held: Assessee company was engaged in the business of manufacture and trading of computer systems and peripherals. It had purchased software from non-residents and it did not deduct TDS from the payments made tow...