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Whether Service tax on software purchase or not?

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 November 2010 Dear Sir/MAdam,
I am purchasing software from a party around 10 lakhs. The provider of software charging me the Service tax on software amount. Whether he is right to charge service tax on purchasing of software or not?
Since software is capital asset and we can depreciation then on puchasing of asset no service tax should be charged..

On payment of such amount whether tds should be deducted or not.....


Thanks a lot....

03 November 2010 As per Explanation to section 65(4) w.e.f. 1.6.2007 “goods” includes computer software. Thus service tax is payable on maintenance or repair or servicing w.e.f. 1.5.2006 (for earlier period is some controversy).
Hope this is clear to you, if you have any further query/classification or professional help contact at banerjee.sambhu@rediffmail.com
Thanks,
S. Banerjee


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