VAT percentage on software products

It depends in which state you are purchasing the software. However, generaly in maximum states the VAT is 4%.  CST is also 4%. If you issue the "C" form to the supplier of software, then he may charge the CST @ 2%.

Octroi depends on the area where you are buying the software. In Maharashtra, the Octroi is 4%. At some places there is Cess which is also around the same rate.

Hi,

We are selling a software product (CD - like Tally, etc.) in Tamil nadu to a client in same state. I would like to know the percentage of VAT to be added. Will CST and OCTROI charges be applicable. Kindly guide me.

Regards,

Bhuvana.