18 December 2013
I have purchased a software through internet and installed in my computer by downloading the “.EXE” file from vendor’s website. Actually that software was purchased by my vender from outside India and they had deducted the TDS U/S 195. (As per their declaration) Now they sold that software to me without any modification. They have charged the Service Tax (12.36%) and VAT (5%) on Value of software (Say Rs. 60,000/-).
Are they correct? If yes, pls refer the section/rule/notification on the basis of which they have charged both Service tax and VAT.
CAclubindia
