DOUBLE TAXATION

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Nitesh Sethiya (Querist)
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03 February 2009 DEAR ALL,

I (jaipur )have purchase a softwaref from a limited company from mumbai. In the bill he charged cst @4%as well as service tax @12.36%.

Tell me it is correct to charge double tax vat as well as service tax?
or the rate of CST is correct ?

Pls reply ASAP.

Thanks & Regards

vipin

vipin (Expert)
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03 February 2009 if a person purchase a tailor made software then only vat/cst will be applicable

in the case of customised software service tax will be leviable

if u purchase a tailor made software then the co charged service tax incorrectly

if u purchase a customised software in that case vat/cst will be leviable on the material items other charges will attract service tax e.g.if u purchase a Rs1000 software it includes material of rs.400 and software rs600 then rs400 vat/cst will be leviable and rs600 service tax will be leviable

rds
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