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Do i need to charge vat for imported hardware products


05 August 2011 Dear Experts,

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?

06 August 2011 Once you import it becomes the Indian goods and VAT is applicable or if sold in course of interstate than CST

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.


11 August 2011 Thank you Mr Agarwal and Mr Krishnamurthy

So I will charge only ST to the client and not supposed to charge any VAT.



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