ISODA urges channel associations to come together

DQW Bureau
New Update

Infotech Software Dealers Association

( href="">ISODA)

during the ongoing sixth SP Summit at Kuala Lumpur said that

the scenario around IT software is complex, and ambiguity over

taxation continue to prevail. Rajesh Kothari, Chairman, ISODA, while

discussing the challenges over software double taxation said that,

they have been struggling for more than two years, and have already

raised the issue in parliament earlier. “The IT software perceives

to be a complex due to ever-changing technologies and delivery models

besides licensing issues by vendors,” said Kothari.

He said that government should have

clear understanding on software, and a sensible taxation is required.

“Delivery of IT software and related services are intricately

related. The finance ministry, in its reply said that, the matter

comes under section 194 (J), therefore 10 percent TDS is

legitimate, which we believe is not good,” said Kothari. The

association has also urged the

channel associations like NASSCOM and MAIT to be a part of their

initiative. Kothari said that, we are optimistic that all association

will come together on software double taxation issue. In other

countries, software is treated as a product, and is not subjected to

double taxation. Post last month notification, the vendors say that

they are charging only one tax, but as GST is expected to come,

sometime later this year, the ambiguity is expected to continue,”

said Devesh Aggarwal, President, ISODA. Ashish Sanyal, former Senior


DIT said that double taxation can't stay, and there is a need to

issue a white paper on the subject.