Our one client is co-operative bank and they have purchased license for original windows operating system of Rs. 643762/-. The vendor co. is charging the Service Tax of Rs. 65859/- and VAT amount of Rs. 32188/- in the bill. They have to say that it is covered under Information Technology services.
Please clarify the matter that whether both the tax will be chargeable or not. But the vendor co. is not showing its service tax no. in the invoice itself.
Waiting for the reply
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its very-very urgent
Replies (5)
Vender is right. its as per rule. service tax no. as per PAN base you can verify/serch about assessee by this link.
PAN Based Assessee Search
| https://sermon.nic.in/sermon/pan_search.html |
Thanks Mr Ram for the reply especially for giving the link for PAN BASED ASSESSEE SEARCH
Both taxes are applicable in this case. You have not purchased only the Windows OS that comes in a Box at the shop. On that only VAT is applicable. You have received the CD and alongwith it intangible licences for more computers. Therefore both the taxes are applicable.
Thanks Mr. Ram for sharing the info.
Service tax and VAT both ae applicable.
On packaged or canned software, CVD exemption has been provided on the portion of the value which represents the consideration for transfer of the right to use such software, subject to specified conditions. This portion of the value is leviable to service tax as “Information Technology Software Service’. Although, the CVD exemption has not been made conditional upon the payment of service tax, it is requested that a mechanism be put in place to ensure regular exchange of information on details of importers availing of the exemption between the customs and service tax formations so that, where necessary, action for recovery of service tax may be taken.
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