Do we have to charge vat + service tax sale of software upgr

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2011 Hi Sir,

We had imported a License upgrade for one of our client for resale and we received the same in the form of paper license (ie., Product Activation Key) with out any media. I would like to know.

1) Should I charge both VAT/CST & Service Tax or any one, cuz our client is asking us to bill 2% CST against C-Form and Service Tax, my Sale is interstate.
2) Also pls clarify is there any TDS applicable for this? if yes how should we deduct to Foreign suppliers & what is its procedure

Pls revert back at your earliest.

Thanks in Advance.

U S Sharma

U S Sharma (Expert)
Follow

20 December 2011 1)import of software and its updates are liable to service tax under reverse mechanism. TDS also applicable u/s 195

2) VAT/CST + service tax both applicable on sale of softwares / updates.