banner_ad

Tds, cst and s.tax on software development

TDS 2174 views 1 replies

A Company has installed an accounting software i.e. ERP and payment is being made in installment. The software company has charged both CST & Service tax on his part bill. My queries are...

(i) Whether TDS is applicable ?

(ii) Is it possible to charge both service tax and CST in the same bill ?

(iii) If service tax applicable, whether input of service tax avialable ?

(iv) Can bill be made seperately, one for software sale after charging CST and another for service charges & installation after charging service tax. If it is possible then comment on TDS applicability.

Replies (1)

HI,

First things is as per cst act, Branded softwares are held as "goods" . Hence, software portion of the bill should be charged with CST not services.

1) TDS is applicable in the service part.

2) yes, but both should be mentioned separately .  service tax should have to be charged on labour charges or services and cst should be on software sale. Make sure that service tax is not mentioned on the total bill and cst is also is not mentioned on total bill.

3) yes, input of service tax can be taken as credit.

4) yes, they can.

regards,

Jafer

(i) Whether TDS is applicable ? (ii) Is it possible to charge both service tax and CST in the same bill ? (iii) If service tax applicable, whether input of service tax avialable ? (iv) Can bill be made seperately, one for software sale after charging CST and another for service charges & installation after charging service tax. If it is possible then comment on TDS applicability.

Read more at: /forum/tds-cst-and-s-tax-on-software-development-233898.asp#.UOmqt3fBZdg


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details