Software issues
This query is : Resolved
S.Siju Gemin
(Querist)
31 August 2009
Dear Sir,
I would like to know the applicability of Service tax OR Sales Tax for the below Software issues:-
1) We develop software for the Hand Held Computers and would supply customised software to the customer as per their requirement. When we bill for this customised software development only, should we charge Sales tax Or Service Tax?
2) What happens when customer wants to pay on the basis of man hours spent by our employee at his workplace for development of software? Should we charge Sales tax or Service Tax?
3) Some of our customer are ready to take Annual maintenance contract purely for Software. Should such maintenance be charged to Sales tax or Service Tax
-Siju
I would like to know the applicability of Service tax OR Sales Tax for the below Software issues:-
1) We develop software for the Hand Held Computers and would supply customised software to the customer as per their requirement. When we bill for this customised software development only, should we charge Sales tax Or Service Tax?
2) What happens when customer wants to pay on the basis of man hours spent by our employee at his workplace for development of software? Should we charge Sales tax or Service Tax?
3) Some of our customer are ready to take Annual maintenance contract purely for Software. Should such maintenance be charged to Sales tax or Service Tax
-Siju
31 August 2009
1. Service tax
2. Same
3. Service tax
2. Same
3. Service tax
CA CHINTAN AJMERA
(Expert)
31 August 2009
In all Service tax
Vijay Chitte
(Expert)
01 September 2009
If it is agreement for sale then only sales tax is applicable, if it is agreement for service contract then only service tax will be applicable.
S.Siju Gemin
(Querist)
01 September 2009
Dear Sir,
There is no agreement entered with our customers
Also note that we are manufacturers of Machines which runs on software.
Kindly note that the above queries which I have raised are:
"I would like to know the applicability of Service tax OR Sales Tax for the below Software issues:-
1) We develop software for the Hand Held Computers and would supply customised software to the customer as per their requirement. When we bill for this customised software development only, should we charge Sales tax Or Service Tax?
2) What happens when customer wants to pay on the basis of man hours spent by our employee at his workplace for development of software? Should we charge Sales tax or Service Tax?
3) Some of our customer are ready to take Annual maintenance contract purely for Software. Should such maintenance be charged to Sales tax or Service Tax"
Kindly guide me as Iam caught between Service tax and Sales tax
-Siju
There is no agreement entered with our customers
Also note that we are manufacturers of Machines which runs on software.
Kindly note that the above queries which I have raised are:
"I would like to know the applicability of Service tax OR Sales Tax for the below Software issues:-
1) We develop software for the Hand Held Computers and would supply customised software to the customer as per their requirement. When we bill for this customised software development only, should we charge Sales tax Or Service Tax?
2) What happens when customer wants to pay on the basis of man hours spent by our employee at his workplace for development of software? Should we charge Sales tax or Service Tax?
3) Some of our customer are ready to take Annual maintenance contract purely for Software. Should such maintenance be charged to Sales tax or Service Tax"
Kindly guide me as Iam caught between Service tax and Sales tax
-Siju
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
- GSTR9 Annual Return
- Applicability of tax on invoice
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Capital Gains Tax on Inherited Mutual Fund
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Form 144 TDS Return Validation Error – Mandatory Fields
- 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
