Software purchase

This query is : Resolved

Mohan Babu.L (Querist)
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16 May 2012 Our co has decided to purchase Mcafee software with license for 3yrs. The vendor demands payment on the following basis:
Software : 3,78,000
Tax @ 12.36 % : 46,721
Vat @ 5 % : 21,236
Total :4,45,957

Is this correct???
Shall we proceed the above for payment??
Please tell me....

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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21 May 2012 Mr Mohan babu,
In fct both VAT and ST are not to paid on thee same transaction.On software sale5% VAT is charged in all states.There is a case law ruling that software making is a service also and hence ST is leviable.There is some confusion.However,confirm from others also.
MJK

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