Purchases & sales of software

This query is : Resolved

Rajkiran (Querist)
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28 November 2011 Dear Sir,

Can anyone please tell me whether sales & purchases of software programs(antivirus softwares) attracts VAT & Service Tax.

Thanks in advance.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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28 November 2011 Yes software programs emded in cds are considered goods and hence service tax as well as VAT will be applicable.

Ravindra Srinivasa

Ravindra Srinivasa (Expert)
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29 November 2011 Sale and Purchase of Software is taxable good under VAT Act.

Only Sale and Purchase of Software ( Trading) does not attract service tax, since you are not rendering any taxable service as defined in Service Tax Act.

CS Bijoy

CS Bijoy (Expert)
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02 December 2011 Till now the packaged software was subjected to double taxation wherein both VAT and Service tax was being levied at the time of its sale. But now the CBEC through the Notification No 53/2010 ST dated 21.12.2010 has exempted service tax on retail sale of packaged computer software classifying the packaged software as goods and not service subject to certain conditions.

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