Tds, cst and s.tax on software development

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

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