Uttar pradesh - sales form 24 - software services
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 June 2014
We export Software Service, do we need to declare it in Uttar Pradesh Form 24(c)?
They are not software but software services (such as installation/configuration etc) so it does not even fit into goods definition?
We have been told that we need to declare our sales even though it is export of software services.
They are not software but software services (such as installation/configuration etc) so it does not even fit into goods definition?
We have been told that we need to declare our sales even though it is export of software services.
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 June 2014
Anyone with any hint?
02 August 2025
In the context of **Uttar Pradesh VAT** and **Form 24(c)**:
---
### 🔹 **Background:**
Form 24 is a **monthly/quarterly sales statement** required under the **UP VAT Act, 2008**, for registered dealers.
Part **24(c)** is typically for **exports**, and is often misinterpreted regarding **services vs goods**.
---
### 🔍 Your Case:
You are providing **software services** (e.g. installation, configuration, consulting) and **exporting** them — **not selling goods**.
---
### ✅ **Key Points:**
1. **Software services** are considered **services**, not **goods**, under UP VAT.
* Only **pre-packaged, off-the-shelf software** is treated as goods.
* **Customised software** or **software services** are **not VATable** and fall under **Service Tax (pre-GST)** or now **GST**.
2. **Form 24(c)** applies to **goods exported** (i.e. VAT-able goods sold outside India).
3. **You are not required** to report **export of services** in Form 24(c).
---
### 🟥 But Why Are You Being Asked to File It?
* Some VAT officers **erroneously interpret all exports** as needing to be reported under Form 24(c), even services.
* This is a **compliance overreach**, likely due to a misunderstanding of the nature of your business.
---
### ✅ Suggested Action:
If insisted upon:
* You may report **"NIL" in Form 24(c)** and add a note:
> "Exported services – non-VATable under UP VAT Act, not goods. Hence, no declaration under Form 24(c) required."
Or attach a letter of clarification with your Form 24 submission.
---
### 🧾 Summary:
| Item | Status under UP VAT | Declare in Form 24(c)? |
| ----------------------- | ------------------- | ---------------------- |
| Packaged Software (CDs) | Goods | Yes (if exported) |
| Software Services | Not goods (service) | ❌ No |
| Custom Software | Not goods (service) | ❌ No |
---
If you're facing a notice or departmental query, I can help you **draft a response** or locate relevant circulars to support your stand.
---
### 🔹 **Background:**
Form 24 is a **monthly/quarterly sales statement** required under the **UP VAT Act, 2008**, for registered dealers.
Part **24(c)** is typically for **exports**, and is often misinterpreted regarding **services vs goods**.
---
### 🔍 Your Case:
You are providing **software services** (e.g. installation, configuration, consulting) and **exporting** them — **not selling goods**.
---
### ✅ **Key Points:**
1. **Software services** are considered **services**, not **goods**, under UP VAT.
* Only **pre-packaged, off-the-shelf software** is treated as goods.
* **Customised software** or **software services** are **not VATable** and fall under **Service Tax (pre-GST)** or now **GST**.
2. **Form 24(c)** applies to **goods exported** (i.e. VAT-able goods sold outside India).
3. **You are not required** to report **export of services** in Form 24(c).
---
### 🟥 But Why Are You Being Asked to File It?
* Some VAT officers **erroneously interpret all exports** as needing to be reported under Form 24(c), even services.
* This is a **compliance overreach**, likely due to a misunderstanding of the nature of your business.
---
### ✅ Suggested Action:
If insisted upon:
* You may report **"NIL" in Form 24(c)** and add a note:
> "Exported services – non-VATable under UP VAT Act, not goods. Hence, no declaration under Form 24(c) required."
Or attach a letter of clarification with your Form 24 submission.
---
### 🧾 Summary:
| Item | Status under UP VAT | Declare in Form 24(c)? |
| ----------------------- | ------------------- | ---------------------- |
| Packaged Software (CDs) | Goods | Yes (if exported) |
| Software Services | Not goods (service) | ❌ No |
| Custom Software | Not goods (service) | ❌ No |
---
If you're facing a notice or departmental query, I can help you **draft a response** or locate relevant circulars to support your stand.
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