Double taxation on software sales

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Dear Sir, I have purchas MS Office software, with local party. And they have provide bill with Service tax & VAT. its right or need to modified? ( service tax on basic value & VAT on basic+service tax )
Replies (6)

Since you have purchased a canned (packaged) software, hence only Sales tax/VAT shall be levied as  canned software is 'goods'.

only VAT should be levied

how to find out double taxation
overview of double taxation
Thanks for the query,
It is a case of Disparity between union and state laws and as per both the laws it is taxable activity
Since it is sale it is liable to state VAT
and since it is also am activity for a consideration to one person to another not excluded from the def. 65B(44) or 66D or even the Notification 25/2012 and more over it is declared service in 66E which clearly states that such a software is not a sale of good but rather a service ie. allowance to use the software for a defined period of time over a licence to use and not a permanent right over such software which will be possible only if source code rights are transfered to the buyer.

Thus, in conclusion, the seller has to charge
*charge both the taxes to comply with the present absurdity in laws of state and union, since GST is on its way presume no chances of change in current law uptil they are there, GST will certainly solve this problem, though it will bring much bigger and interesting ones with it.

Hope you have a reason for double taxation.
In case of any query please revert.
Thanks,
Abhimanyu


CCI Pro

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