I have recived two bills from our vendor who deals in software license. It's registered & billing office in Hyderabad. In those bills they are charge Vat as well as service tax on whole amount. It's seem to double taxation.
I agreed your veiw but With the passing of the Finance Bill 2008 by the parliament, "information technology software service" has come under the service tax coverage. This has resulted in double taxation issue as software is already taxed under VAT in AP. We are also aware that there is already a legal opinion of the Hon. Supreme Court that a transaction cannot be taxed under both VAT as well as Service tax to the full extent of the transaction value.
So i want to your valuable comment on the above same.
15 April 2009
The licenses as per the decision of the SC in TCS case is goods. Now by bringing a competing entry in ST the Central Govt. has bought this confusion. Some companies have asked the courts to decide either way but not both. In my view only VAT is payable.
CAclubindia
