I will like to understand the taxation issue on sale of software. A UK based company is selling software online to a Company in India. The Indian company has to pay the total amount to a Related entity in India. Now as the software will be sold online i.e. the Indian Company has to download the software directly from the Internet, in such cases whether VAT is applicable. If applicable which state will have the right to tax such transaction. The state where the Indian Company is located or where the company who will collect the payment is located. Also whether Service tax is also applicable on such software. The software will be "standard software" and can be customise to local needs.
CAclubindia
