The Supreme Court of India dismissed a special leave petition ( SLP ) in the challenge regarding the judgment on software firms that purchase computer software from foreign software suppliers exempted from deducting TDS.

The Court noted that the issue raised by the Revenue in the present special leave petition is covered against them vide judgment dated 02.03.2021 in the case of Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner of Income Tax & Anr. The Additional Solicitor General states that a Review Petition has been filed against this judgment, which is currently pending and the right of the Revenue to revive the present special leave petitions may be reserved, in case the Review Petition is allowed.

A Two-Judge Bench of Justice Sanjiv Khanna and Justice Dipankar Datta observed that “Recording the aforesaid, the special leave petition is dismissed, as the same is covered by the said decision of this Court. In case the review petition on the issue raised in the present special leave petition is allowed, it will be open to the petitioner(s) to get the present special leave petitions revived.”

The Supreme Court of India in “Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner of Income Tax & Anr, ruled that software firms that purchase computer software from foreign software suppliers/manufacturers have now been exempted from deducting the TDS. As a consequence of this ruling, the cost of purchasing computer software by Indian firms/end-users will be lower because foreign suppliers/manufacturers may choose to lower the price due to the tax relief provided by the judgment. This effect will be of great benefit to Indian suppliers/end-users. To Read the full text of the Order CLICK HERE