Difference between Sale and License
This query is : Resolved
06 January 2010
From the point of a Software development company, can someone pls tell me the difference between 'sale of a software' and 'license of software'?
Pls tell me the relevant sections of the Act which define and distinguish these.
Thanks in advance.
Pls tell me the relevant sections of the Act which define and distinguish these.
Thanks in advance.
CA.Hanumantha Reddy
(Expert)
24 January 2011
you have to read sale definition under respective state laws along with sale of goods act, 1930.sale of software and license of software are not defined in any act.
however, for your easy references the summary is as below;
These two terms are very comprehensive and most litigate with regard to service tax and sales tax .Thus, giving a very condensed statement in general for your references.
Sale of software normally denotes that either it would be a customized software or packaged software and whereas license of software denotes that there shall not be any sale of customized software or packaged software rather giving a permission to do certain work for the specified period which has been authorized in the said license
however, for your easy references the summary is as below;
These two terms are very comprehensive and most litigate with regard to service tax and sales tax .Thus, giving a very condensed statement in general for your references.
Sale of software normally denotes that either it would be a customized software or packaged software and whereas license of software denotes that there shall not be any sale of customized software or packaged software rather giving a permission to do certain work for the specified period which has been authorized in the said license
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