Service Tax & VAT

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saida (Querist)
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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...

CA. abhinav kumar

CA. abhinav kumar (Expert)
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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.

saida

saida (Querist)
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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

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