Dual taxation

Dear friends,

One of our clients  provide  software services through physical and online delivery of software which they develop in their own office place. In addition they purchase branded license softwares and sell it to their customers without any modification.

My question is

1. Whether dual tax is applicable (service tax/excise duty + vat) for the software which they develop at their own place and deliver to their customer.

2. If such dual tax is applicable for the above mentioned service whether excise duty or service tax is applicable. in addition to vat.

3. Whether dual tax is applicable for the packaged branded software which they buy from outside supplier and sell it as a product to their clients without any modification or only vat is applicable.

4. Whether the customer is liable to deduct tds for receiving the software as a service and receiving the packaged branded software as a product.

Kindly clarify,

 

Thanks in advance

Replies (2)

The software devloped at your place and sold to your customer amounts to manufacture and being so does not attract Service tax,only Excise duty and applicable VAT will be charged.So far selling of  packed software is concerned it is mere a sale and not the service so, S.T is not applicable here.

dear prabhat sir,

But excise duty is applicable only for packaged and canned software as per notification 6/2006 central excise. Any customised software attracts nil rate of duty. Am i correct?? Correct me if i am wrong. Does customised software attracts service tax??

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