CBDT extends 80% rate of depreciation on windmills and devices running on wind energy installed after 31-3-2014

INCOME-TAX (EIGHTH AMENDMENT) RULES, 2014 - AMENDMENT IN NEW APPENDIX-I

NOTIFICATION NO. 43/2014 [F.NO.152/1/2013-TPL]/SO 2399(E), DATED 16-9-2014

In exercise of the powers conferred by section 295 read with section 32 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (8th Amendment) Rules, 2014.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in the New Appendix I, in Part-A relating to Tangible Assets, under the heading III. Machinery and Plant, in item (8), in sub-item (xiii),—

(a)		In clause (1), for the words, figures and letters "installed on or before 31st day of March, 2012", the words, figures and letters "installed on or after the 1st day of April, 2014" shall be substituted; and
(b)		In clause (m), for the words, figures and letters "installed on or before 31st day of March, 2012", the words, figures and letters "installed on or after 1st day of April, 2014" shall be substituted.

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Taxability of Software Payments under Income-Tax Act

Software is made available to end users by software developers either directly or through distributors. In case of direct transfer, the EULA (End user Licence Agreement) prevents the end user from effecting resale of such software. Hence there is no question of multiple level deduction of tax at source. Tax has to be deducted at source either u/s 194J or u/s 195 of Income-tax Act. 

However in case of transfer through distributor, the chain is Software developer-Distributor-End-user.  The scope of the notification is captured in the following table

S.No	Software developer	Distributor	End-user	TDS u/s	Benefit of Notification
1	Resident	Resident	Resident	194J by Distributor to Software Developer. End user need not deduct Tax at source	Available
2	Non-Resident	Resident	Resident	195 by distributor to Software developer. End user need not deduct tax at source	Available
3	Non-Resident	Non-Resident	Resident	195 by distributor to Software developer and by End-user to distributor.	Not Available
4	Non-Resident	Resident	Non-Resident	195 by Distributor to Software Developer. End-user need not deduct Tax at Source	Available

- See more at: http://taxguru.in/income-tax/taxability-software-payments-incometax-act-1961.html#sthash.HJYOqjw0.dpuf

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