Budget 2008

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This query is : Resolved

Jitender Garg (Querist)

10 March 2008 As per budget 2008 4 ner services become chargable to service tax, one of which is "CUSTOMISED SOFTWARE".

As per case of "TATA CONSULTANCY SERVICES", any software sold Whether in CDs or floppy or by any other mode, Central sale tax will be charged.

Now my query is what is difference between these "software" n "customised software" please explain with example

Dayal

Dayal (Expert)

11 March 2008 Customised software means a softwared modified to meet business requirement

For example SAP is a software which meets manufacturing / retail business needs, but it does not support Indian Taxation

To meet with the statutory obligation the SAP has a add on called SIN which supports Indian Taxation.

The software is customized to meet this requirment.

If we buy SAP as is then Vat is applicable, but if it modified then service tax as well as Vat is applicable

Hope this clarifies your inquiry

Dayal

Dayal (Expert)

11 March 2008 Should you need any additional clarification do let me know

Jitender Garg

Jitender Garg (Querist)

11 March 2008 Thanks Expert Dayal

Jitender Garg

Jitender Garg (Querist)

11 March 2008 Sorry Mr. Dayal as per judgement in case of SUDHIR KR SHARMA VS ITO it was held that Stipend reveived by article is fully exempt as it is received like scholarship to meet his exp. So it is exempt u/s 10(16)

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