Taxation of software

Hi,

When you are selling the product, VAT needs to be charged. If you are selling the software as such, VAT will be applicable. When you are allowing for subscripttion or something like that, Service tax needs to be collected.

Now a days it is seen that, both VAT and Service tax are charging on the same bill to avoid future problems.

vat @ 5.5% or applicable as per vat rules  ond st on basic cost