VAT & Service Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2011 Dear Sir,

Kindly tell me if a company deals in software business..shall it levy VAT & Service Tax both on the invoice or Just VAT/CST ?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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19 June 2011 Mr. Author,
Sale of software in any form is chargeable with 5% VAT. For interstate sales 5% without 'C' form and 2% against 'C' form.No Service tax is applicable.
MJK

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2011 but we purchased a tally software there is cst 5%, and Service tax 10.30 % on IT software Services.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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20 June 2011 Dear Author,
The honourable Supreme Court has also held in several cases that Software is to be treated as goods and therefore chargeable with VAT. A transaction involving a sale of goods can not be levied Service tax,because it is applicable to rendering of services only.Both the liabilities do not arise on the same transaction. So,you can ask for refund of Service tax from your suppier.
MJK

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2011 dear Sir, Thanks a lot