Do i need to charge vat for imported hardware products

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vinzyy (Querist)
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05 August 2011 Dear Experts,

I have imported some hardware for supplying to a client.
This hardware needs some software customization & installation which I am providing.
My office is located in Bangalore and client is located in Hyderabad.
What Taxes should I charge to the client:
VAT or Service Tax?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 August 2011 Once you import it becomes the Indian goods and VAT is applicable or if sold in course of interstate than CST

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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08 August 2011 Mr.vinzyy,
When you sell to an interstate buyer the hardware is chargeable @2% against 'C' form,and 5% without 'C' form.If you add any software to the imported goods that value is also to be added to taxable value.otherwise, if do only a service like customisation and installation,and charge separately,such ammounts attract omly ST and not VAT.

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vinzyy

vinzyy (Querist)
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11 August 2011 Thank you Mr Agarwal and Mr Krishnamurthy

So I will charge only ST to the client and not supposed to charge any VAT.

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