I have imported some hardware for supplying to a client. This hardware needs some software customization & installation which I am providing. My office is located in Bangalore and client is located in Hyderabad. What Taxes should I charge to the client: VAT or Service Tax?
08 August 2011
Mr.vinzyy, When you sell to an interstate buyer the hardware is chargeable @2% against 'C' form,and 5% without 'C' form.If you add any software to the imported goods that value is also to be added to taxable value.otherwise, if do only a service like customisation and installation,and charge separately,such ammounts attract omly ST and not VAT.