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Interstate taxes

rates 1273 views 2 replies

Durga

Sales Manager

26 Points Posted on 07 August 2013

Dear Experts, I have a query regarding inter state transaction. I am a distributor for a software i would like to sell a Maintenance to existing customer.Billing is from Hyderabad and customer is at Delhi. I will add Service Tax if i am selling with in the state. Please suggest what taxes applicable for this transaction. Sasi.G

Replies (2)

CA Suri Kota

Assistant Manager @ EY

955 Points Posted on 07 August 2013

Hi,

Even for the interstate transaction, only Service tax is applicable. There is no VAT / CST applicability on Maintenance in AP.

Suri.

Prabhat Kumar

Advocate & Consultant

1912 Points Posted on 07 August 2013

you are providing maintainence service to your customer.It is a performence based service and as per Rule 3 and 4 of the Plase Of Provision Of Service Rules, 2012,location of service performed is Delhi.so,you should charge service tax in your bill.