Service Tax & VAT
This query is : Resolved
25 November 2009
Help plZZZZZZZZZZ.........
Dear All.....
Can anybody put some light on this doubt pls:
Whether ST & VAT both are applicable on S/W Product?? If yes, what is the procedure for calculating tax? which option is correct and any circulars/guidance on this issue??
OPTION - 1
Basic Price 1000
vat @ 4% on Basic 40
st@10% on Basic 100
Total Amt 1140
OPTION - 2
Basic Price 1000
vat @ 4% on Basic 40
1040
----
st@10% 104
Total Amt 1144
OPTION - 3
Basic Price 1000
st@10% on basic 100
----
1100
vat@4% 44
Total Amt 1144
Is there any procedure?? pls help me in this regard.. Thanks in advance...
Dear All.....
Can anybody put some light on this doubt pls:
Whether ST & VAT both are applicable on S/W Product?? If yes, what is the procedure for calculating tax? which option is correct and any circulars/guidance on this issue??
OPTION - 1
Basic Price 1000
vat @ 4% on Basic 40
st@10% on Basic 100
Total Amt 1140
OPTION - 2
Basic Price 1000
vat @ 4% on Basic 40
1040
----
st@10% 104
Total Amt 1144
OPTION - 3
Basic Price 1000
st@10% on basic 100
----
1100
vat@4% 44
Total Amt 1144
Is there any procedure?? pls help me in this regard.. Thanks in advance...
CA. abhinav kumar
(Expert)
26 November 2009
U are talking about software product, its depend upon nature of product/ activity, if u simply sold it in market then VAT is applicable and if u develop for some one then service tax will be applicable.
26 November 2009
Thank u sir..
We buy S/W and customise as required by client and sell it to the client. In this case hope both VAT & Service Tax will be applicable due to updation of Service Tax rules in 2008. pls clarify.. thanks in advance
We buy S/W and customise as required by client and sell it to the client. In this case hope both VAT & Service Tax will be applicable due to updation of Service Tax rules in 2008. pls clarify.. thanks in advance
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