Service tax & vat on software licenses
This query is : Resolved
22 August 2013
Our company is pur chasing software from microsoft through dealer HCL. they are billing both service tax and VAT.
My query is
1. since service tax is applicable due to dealing between OEM and HCL and HCL is liable as service recepient, why our company at all should pay servicer tax on gross contractual value.
2.VAT i understand is applicable as licenses in physical form received
3. can our company pay the differential service tax ie. differcne between service tax claimed by HCL and service tax actually paid by HCL as service recepient
My query is
1. since service tax is applicable due to dealing between OEM and HCL and HCL is liable as service recepient, why our company at all should pay servicer tax on gross contractual value.
2.VAT i understand is applicable as licenses in physical form received
3. can our company pay the differential service tax ie. differcne between service tax claimed by HCL and service tax actually paid by HCL as service recepient
CA Suresh Jain
(Expert)
22 August 2013
HCL is charging the service tax correctly. You can not just pay the differential service tax,You need to take CENVAT Credit, raise the invoice with full service tax and utilise the CENVAT credit for payment your service tax liability
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Gift to nri relatives resides in usa
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation Error – Mandatory Fields
- LLP audit and disclosure
- Form 144 TDS Return Validation error
- GST ITC as per notification 12/2023- central tax
- Rent agreement of House of deceased person
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
