Software sale

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Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2013 Hi,

Can I please have a response to a query regarding software sales.

Mine is a pvt ltd co, into software development.
We develop customised software.
1. Professional fees: both service tax and vat
2. license fees-vat and also service tax only if remitted electronically (not thru cd/pendrive)
3. AMC-service tax and also vat if product is involved.
Kindly let me know if this is correct.

Thanks and regards,
Vidya

CA Nagaraj Bhat

CA Nagaraj Bhat (Expert)

27 March 2013 For software development service tax is applicable, since it is covered under declared service. So above said points are correct.

CA Nagaraj Bhat

CA Nagaraj Bhat (Expert)

27 March 2013 For software development service tax is applicable, since it is covered under declared service. So above said points are correct.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Sir,
Thanks for your reply.

From what I understand, both VAT plus service tax on license fees and professional fees.

In case of AMC, VAT on 75% and service tax on entire amount,(the reason being that most AMC will involve coding, which also is a product, so to be on the safer side it is better to charge both taxes on the AMC fees. (as of now AMC is said to be only for maintenance, but I feel better to charge both vat at 75% plus service tax on entire)

Pl confirm.
Thanks once again.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Also, please confirm if tds is applicable on software..
Thanks,
Vidya

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