Service tax/vat-urgent....

our company is about to provide one product,what would be the tax implication on the product??

Features of product:

the device is an in-house mini server that holds digital library software application and eBooks and allows multi device access to eBooks without internet.

 The places without internet facilities or inadequate bandwidtth can be provided

in product, a mini server (size of a mobile phone) is loaded securely with library application and e-content .It works with a router, like a local Wi-Fi (without internet).

 This functionality allows users to access the e-content with their devices (desk tops, laptops, phones, tablets, etc). it can be installed in any identified locations, where users can access it within 50 meters radius

 These facilities can be provided in Education institutions, Courts, community centers, recreation centers, bus stands

.  Each box can be loaded with required digital content academic & general ebooks, audio and video books

Replies (3)

there are two parts ( actualy  three parts of billing ) 

1) hardware ( subject to Excise duty and Vat Applicable in state) 

2) development of  software (subject to Service Tax and Vat applicable) 

3) after sale service and maintainance (Subject to Service Tax and Vat applicable) 

 

On software ie Digital content vat & service tax both will come?

yes, both are chargable, even  in case of  hire / renting of  software case also, both are applicable 

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