Applicability of vat or service tax or both

A company located in chennai  is engaged in software development (which includes web desiging & maintenance of softwares).

Can anyone let me know whether VAT or Service tax or both VAT & service tax is applicable during billing ?

Replies (10)

VAT and Service ta both are applicable

Agreee with above for maintainace service tax applicable for selling software VAt is applicable

Saurabh Malpani

 

Can you let me know how both are applicable ?

thanks in advance

Dear John Sir,

It can be said like,

1. If co is giving service in developing software on the basis of the clients requirements, then SERVICE TAX.

2. If co. developed software, wrtite it on CD/DVD and sell, then VAT treating to be as a product.

Service Tax & VAT both will be applicable in this case.....

 

Our auditors say we need to charge VAT of  5% on the 70% of invoice and balance 30% should be taxed with service tax. Let me know if this is correct ?

u can first charge the VAT amount and there after you can charge the service tax in full amount

u can first charge the VAT amount and there after you can charge the service tax in full amount

SIR

U HAVE TO CHARGE SERVICE TAX FOR MAINTENANCE OF SOFTWARE & VAT ON SALE OF SOFTWARE

SIR

U HAVE TO CHARGE SERVICE TAX FOR MAINTENANCE OF SOFTWARE & VAT ON SALE OF SOFTWARE

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