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Tax applicability

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Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2013 Dear Sir/Madam,

I am working in a IT Company in Udupi Dist, Karnataka, we provide software development service to the client. the design will be developed according to client requirement. kindly confirm the tax applicability for the same.

We checked with many CA professionals.... some are saying only service tax applicable & some are saying both Service Tax & VAT applicable. bit confusion on this.. kindly help me.

Regards,
Shivraj Poojary

PAWAN KUMAR

PAWAN KUMAR (Expert)

12 June 2013 Dear Friend,

If you are developing software for the client as per their requirement and providing the service accordingly without the aid of any material, Then you will be only liable for service tax.

If you are also providing some material with software development, then VAT would also be liable as sale of material.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2013 Thank you sir...

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