Double taxation on Software License (APVat & Service Tax)

This query is : Resolved

Anupam Bajaj (Querist)
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04 March 2009 Dear All,

I have recived two bills from our vendor who deals in software license. It's registered & billing office in Hyderabad. In those bills they are charge Vat as well as service tax on whole amount. It's seem to double taxation.

So Plz solve my query ASAP.

Thanks in advance.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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04 March 2009 This is a case of wrong billing. VAT and Service Tax can't be levied togther on same billing amount. Their should some break up.

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Anupam Bajaj

Anupam Bajaj (Querist)
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05 March 2009 Mr. Lokesh,

I agreed your veiw but With the passing of the Finance Bill 2008 by the parliament, "information
technology software service" has come under the service tax coverage. This
has resulted in double taxation issue as software is already taxed under
VAT in AP. We are also aware that there is already a legal opinion of the Hon.
Supreme Court that a transaction cannot be taxed under both VAT as well as
Service tax to the full extent of the transaction value.

So i want to your valuable comment on the above same.

Anupam Bajaj

Anupam Bajaj (Querist)
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05 March 2009 Plz mention TDS rate on the above same.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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15 April 2009 The licenses as per the decision of the SC in TCS case is goods.
Now by bringing a competing entry in ST the Central Govt. has bought this confusion. Some companies have asked the courts to decide either way but not both.
In my view only VAT is payable.