02 February 2012
we are into software sales and we purchased a product(Software). The supplier charges us service tax on the basic cost of the product and VAT on Basic cost + service tax? is this calculation correct Please clarify.
02 February 2012
The tax charged is correct. This is being done as to the confusion of taxation on software as to goods or service. Hence a conservative approach is being observed and followed across the industry charging both service tax and VAT
CAclubindia
