ISODA urges channel associations to come together

Infotech Software Dealers
Association ( href="http://www.dqweek.com/ISODA-claims-round-one">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.