glidor@gmail.com
21068 Points
Joined January 2010
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)
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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"