Applicability Service Tax on I.T.Software Services

M P Singh (Service - Finance & Taxation)   (180 Points)

03 June 2008  

Dear Friends,

Can you through some light on the applicability of  service tax on "Software Licences" being traded in the normal course of business in the line of new services "Information Technology Software Services " introduced by the finance bill 2008 and service tax is applicable with effect from vide notification no. 18/2008 -Service Tax Dated 10.05.2008.

Since the Software Licences are already covered in the VAT act under the I.T.Software and taxable @ 4% under Delhi local VAT .  Please also clarify the  whether it will be liable to  VAT also after the service tax notification.

Thanks & Regards,

M P Singh