ISODA urges channel associations to come together

Infotech Software Dealers Association
( href="https://www.dqweek.com/isoda-loses-petition-over-tax-on-packaged-software">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
Director,
DIT said that double taxation can't stay, and there is a need to
issue a white paper on the subject.