VAT and Service tax both on software

a person is charging VAT and service tax both on software whether he can.

Replies (6)

vat is chargable on packaged software, while service tax is on others, 

he may have been under contract for service and maintanance of software, 

Works contract is a common area where vat and service tax both are applicable.

But whther he can charge VAT and service tax in one bill

i will be very thankful if you can provide me the case law on the same.

 

Yes you can charge both taxes but you have to bifurcate same in invoice sorry I don’t have any case law on same..

what we have to byfircate the service and good or VAt or service tax

 

vat charged on packed software and service tax charged on other software but my point of view raise two invoice on for vat  and second for service tax its better to maintain separate records of vat and service tax…..

from 2008, software licence is catagorized as service, 

if you have asked the software seller to install the software for you , then they are right to charge the service tax, but if u have bought the software in packed condition then their invoice would be alike .....

for software of 1000/- value

Licence ( Key) fees 500 *10.3% = 51.50 service tax

packaged software 500*4% = 20/- (VAT)

=============================================================================

 

however when u ask the person to install the software and don't want to claim the warantee from the company but from vendor, then its service part of the dealer to provide u installation support/ after sales support and warantee cover, ( may be replenished by the principal but not the taxes) so he charge the service tax on whole the pack and vat also, as the buyer is not ready to book the payment in TWO heads and issue ONE order including all as it happens in "comprehensive AMC"

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details