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This query is : Resolved
22 August 2008
Dear Friends,
My Client is a Software Seller, they buy and sell softwares to colleges and institutions, now their suppliers started charging service tax as well as vat?
how should we charge our customers,
Method 1
Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX+YYY) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$
or Method 2
Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$
or Method 3
Price = XXX
Vat @ 4%on (XXX) = YYY
Service Tax @12.36%on(XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ) = $$$
Please Help Me in This Case Many Suppliers Charges in Different Methods Method is been observed in many suppliers Invoices Which is Correct Method For Calculation
Either Vat has to be charged or service tax
vat has to be charged when the software is an off the shelf software
service tax is to be charged when the software is a customized software.
.
My Client is a Software Seller, they buy and sell softwares to colleges and institutions, now their suppliers started charging service tax as well as vat?
how should we charge our customers,
Method 1
Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX+YYY) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$
or Method 2
Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$
or Method 3
Price = XXX
Vat @ 4%on (XXX) = YYY
Service Tax @12.36%on(XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ) = $$$
Please Help Me in This Case Many Suppliers Charges in Different Methods Method is been observed in many suppliers Invoices Which is Correct Method For Calculation
Either Vat has to be charged or service tax
vat has to be charged when the software is an off the shelf software
service tax is to be charged when the software is a customized software.
.
22 August 2008
I think you dont know the latest Amendments in Service tax ..
Have you Ever Seen.. Invoice of a Software Company
Have you Ever Seen.. Invoice of a Software Company
22 August 2008
Yes I Have Seen It.
23 August 2008
It Can Be.
22 September 2008
Sell of Software (soft-wares are goods)should not fall under the ambit of service tax.
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