Vat applicability
This query is : Resolved
16 July 2012
Hi,
Please suggest that VAT is applicable on the software development for mobile applications.
Thanks
Parminder
Please suggest that VAT is applicable on the software development for mobile applications.
Thanks
Parminder
16 July 2012
Which state the query relates?
17 July 2012
This is for Andhra Pradesh
02 August 2025
For **Andhra Pradesh**, regarding VAT applicability on **software development for mobile applications**:
* **VAT is generally not applicable** on software development services because **VAT applies only to sale of goods**, not services.
* Software development is treated as a **service** under the service tax laws.
* Therefore, **Service Tax (now GST) applies**, not VAT.
* However, if the software is sold as a **packaged product** (like a CD or physical media), then VAT might apply on the sale of that physical product.
* But pure **software development, customization, or delivery electronically is considered a service** and falls under service tax/GST.
---
**Summary:**
| Nature | VAT Applicability | Service Tax Applicability |
| --------------------------------- | ----------------- | ------------------------- |
| Software development (service) | No | Yes |
| Sale of physical software package | Yes | Yes |
---
So, for your mobile app development, **VAT does not apply** in Andhra Pradesh — service tax or now GST would be the relevant tax.
If you want, I can help you with the latest GST provisions for software services as well!
* **VAT is generally not applicable** on software development services because **VAT applies only to sale of goods**, not services.
* Software development is treated as a **service** under the service tax laws.
* Therefore, **Service Tax (now GST) applies**, not VAT.
* However, if the software is sold as a **packaged product** (like a CD or physical media), then VAT might apply on the sale of that physical product.
* But pure **software development, customization, or delivery electronically is considered a service** and falls under service tax/GST.
---
**Summary:**
| Nature | VAT Applicability | Service Tax Applicability |
| --------------------------------- | ----------------- | ------------------------- |
| Software development (service) | No | Yes |
| Sale of physical software package | Yes | Yes |
---
So, for your mobile app development, **VAT does not apply** in Andhra Pradesh — service tax or now GST would be the relevant tax.
If you want, I can help you with the latest GST provisions for software services as well!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Opting our of sec 44AD
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Multiple trade mark
- FORM 26A APPLICABILITY
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
