applicability of VAT/CST for elctronically supplied software

This query is : Resolved

Krishna Khot (Querist)
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09 April 2008 One of our clients situated in Maharashtra, supply the softwares to its customers and then undertake the consultancy for installing and maintaining the software. These transactions are in isolation. The softwares are in the form of resale. They make the software available on its website which is obtained from their overseas supplier. For supply of software they charge VAT and consultancy they charge Service tax as applicable.
The query is when the client supplies software to its customers who are situated outside Maharashtra,whether they should charge CST or VAT? There is no movement of goods from Maharashtra to any other state. The software is supplied electronically.