Software Sales

Tinaz (132 Points)

10 June 2009  

Dear Friends,

Can anyone guide me on the following aspect of Service tax on software services.

Software sales are chargeable under VAT as goods, as also chargeable to service tax under Information Technology Software services. The vendor hence is charging both VAT & Service Tax. One commodity is being taxed twice. Can anyone guide on the correct treatment of taxes for such sales.