SERVICE ON PURCHASE OF SOFTWARE

This query is : Resolved

Nagaraj Achar (Querist)
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11 February 2011 Dear,

We are purchasing of software's for our company and selling company charging both Service tax and VAT in the invoice.
Please let me know whether i need to deduct TDS on the total bill take it service as professional or technical fees (Amount more that 30000)or not deducted on the entire bill.Please suggest.What is my doubt is there is no bifurcation in the invoice towards product and service.Please help me on this.

Thanks
Nagaraj

VIPIN KUTUMBALE

VIPIN KUTUMBALE (Expert)
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18 February 2011

you have to deduct income tax on total amount including vat & service tax.

I am also interested in to know why service tax is being charged when VAT is charged?