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Applicability of service tax and vat on Software sale

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sumedha hegde

sumedha hegde (Querist)
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19 July 2011 Sale of software attracts VAT or Service tax? or both. I'd like know the current scenario on this issue.

CA Navin Jain

CA Navin Jain (Expert)
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19 July 2011 I saw lot of the invoices at which vat and service tax both is charged in the case of selling of software.

According to vat department its a sale therefore vat is applicable

According to service tax law, During the development of software its including the technical services then service tax is applicable.

Further, if both has been charged, then tds ia also applicable under sec 194J.... however anybody donot have deduct the tds while making the payment.

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