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URGENT QUERY(SERVICE TAX) ?????

Queries 593 views 4 replies

CA Bharat Aggarwal

283 Points Joined October 2007

SERVICE TAX & VAT BOTH ARE APPLICABLE ON SALE OF SOFTWARE.

HOW TO CHARGE SERVICE TAX & VAT ON SALE OF SOFTWARE ?

WHETHER VAT IS TO BE CHARGED ON GROSS BILL INCLUDING SERVICE TAX OR EXCLUDING SERVICE TAX ???

Replies (4)

k.sathyanarayanan

Audit Clerk

23 Points Joined December 2009

Is service applicable for reimbursable of travelling & Out of pocket expenses.if So please tell me under what notification.

Jeevesh Mehta

Advocate- Corporate Commercial & Indire

861 Points Joined February 2009

Excluding Service TAx

RAJEEV

article

156 Points Joined September 2009

excluding service tax bcoz if u charged vat on service tax then there is cascading impact

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

Originally posted by : Bharat Aggarwal

SERVICE TAX & VAT BOTH ARE APPLICABLE ON SALE OF SOFTWARE.
HOW TO CHARGE SERVICE TAX & VAT ON SALE OF SOFTWARE ?
WHETHER VAT IS TO BE CHARGED ON GROSS BILL INCLUDING SERVICE TAX OR EXCLUDING SERVICE TAX ???
The first point is whether VAT + ST can be charged on the full amount. Though big players doing that, there is a legal lacunae as ST and VAT are mutually exclusive. As per TCS case - SC only VAT payable. The insertion of the entry in 2008 and amendment in 2009 in my view is illegal. This anyway has to be confirmed by the courts to be relied on.

If chosen to pay then only on basic amount should VAT or ST be charged.