Service tax on software

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 WE ARE PURCHASING ANTI VIRUS SOFTWARE AND THE VENDOR IS CHARGING 10.3% SERVICE TAX AS WELL AS 5% VAT.

IN ANOTHER CASE THE VENDOR IS CHARGING ONLY SERVICE TAX @10.3% FOR RENEWAL OF AMC FOR ANTIVIRUS FOR ONE YEAR.

ARE WE LIABLE TO PAY SERVICE TAX AND VAT IN THE FIRST CASE AND ONLY SERVICE TAX IN 2ND CASE AS HAS BEEN CHARGED BY THE VENDOR.

anurag

anurag (Expert)
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09 December 2011 Yes,
As per supreme court decision in case of TCS software can be treated as goods. so in first case both vat and service tax will be leived.

while in second case the vendor is not selling any software it is providing only pure service and no replacement of goods is there.