Standard billing in ISODA

Infotech Software Dealers' Association (ISODA) has been aggressively working towards the betterment and refinement of policies related to software taxation. In a recent notice, ISODA issued a statement along with a document, which is an effort to introduce a form of standardization in the filing procedure.

Only last month, union Finance Minister Pranab Mukherjee, as an reassurance, had announced to amend multi-level tax deduction at source (TDS) on software under Section 194 J (of the Income-Tax Act) which says that a 10% tax deduction needs to be made at each point of sale.

The new notice issued by ISODA can be used as one of the methods during invoicing and attach the document to the invoice. This document has the declaration and the notification together.

The association has requested to follow any one of the above processes viz the above declaration in invoice or the two page attachment. Furthermore, the partners need to ensure that one does not make the mistake in quoting PAN of the original deductor of the TDS with the relevant section. ISODA has been working closely with TAIT to spread the message to other associations and partners.