Tax applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2011 We are selling to various clients softwares and its AMC after inporting from overseas prinicpals (receiving via internet) and also from local reputed suppliers.
what we want to know is
1. Applicability of VAT/CST/Service Tax
2. Does AMC attracts both CST/VAT and Service Tax
3. Papers/books available on this subject

VISHRUT

VISHRUT (Expert)
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27 August 2011 1. Your Product would attract both VAT/CST and Service TAx as the CBEC has still not given clarification on applicability of taxes on the Software.

However in case following view is also been considered by various courts including appex court

(a) If software is tailormade than apply VAT/CST on the same

(b) If software is customised or modified as per client requirement than service Tax will be applicable on whole value

2. In Case of AMC also if it comes free in form of guarantee at the time of sales as a part of software sale policy than VAt/CST will be applicable otherwise Service Tax will require to be charged on the same.

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2013 As both Sr. tax & CST is being charged on software sale.
My query:-Is Sr. tax & CST both are charged on base price or 1st Sr. tax is charged & then CST CHARGED ON TOTAL THAT COMES
FOR EXAMPLE:-If base price is Rs.100/-

100+12.36+5=117.36

OR
100+12.36=112.36*5%=117.98

WHAT IS CORRECT?

VISHRUT

VISHRUT (Expert)
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26 April 2013 Well both tax will be charged in the same base price only.

However scenario after introduction of negative list is changed.

Now any software or AMC involving human interference will covered under service tax and service tax shall be charged and in the same context certain state government has given relaxation on changeability of vat and cst on same.