CST on Softwares

Dear All,

Anyone can help me out regarding an issue of CST. My company is a sofware company. We are selling both Readymade software and Customised software. We are currently charging service tax for the both. We are planning to bid for a contract and we will purchase one supporting software from other company and that company will charge VAT. we will bid for Banglore (Karnataka ). So any one can assist me what should I do I should charge CST or VAT or Service Tax in my quotation.

Waiting for assistance.

Regards,

Jitendra

Replies (4)

Dear Jitendra,

You  need to charge the service tax and VAT both.

Firstly, you have to charge on the basic cost of software and then on basic+service tax, you need to charge the VAT or CST whichever applicable. The current VAT rate is 4%. - Laxmikant Jaipurkar, Tax Consultant

Dear Laxmikant,

Thanx for your promp reply. I just want to know that if we will charge both Service Tax and VAT then it will not attract double taxation. So please give me your opinion for the same.

Regards,

Jitendra

Dear Jitentra,

                            I am not agree with the view of LaxmiKant because Service Tax charged on service and VAT charged on goods. one thing may be either Service or Goods. Please write me full details about the case in my email "sachinagarwalcallb @ gmail.com"

thank u!!!!!!

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