student ca final
182 Points
Joined February 2011
if we purchased sotware then vendor charged VAT or CST as the case may be. but if the same has not been covered under sale of goods then liable to ST. u have cleared by below example:-
Mr. X (Vendor/Seller)--------------------------------Mr. Y(Buyer)
Mr. x sold software (e.g. tally software) permanently to Mr. y i.e. transfer all rights and possession to buyer permanently then this transaction liable to sales tax.
In the above exmaple if Mr. X transfer rights on temporary basis (E.g sell tally software on temporary basis i.e. mr. y needs to renewal tally software time to time) then this transaction liable to service tax.
Support-Sec 66 E (declared services- Service tax rules) and Article 366A -constitution of India.