Information Technology software

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parimala k (Querist)
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12 March 2009 Dear sir / madam,

Is it Information Technology software is Service Taxable? or AP VAT chargeble?

if chargeble i wasnot paid. for the
FY 04-05, 05-06

plz tell me solution

if taxable tell me percent?

regards.
venkatesh

CA Vijay V Kodmur

CA Vijay V Kodmur (Querist)
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12 March 2009 Dear friends,
A Partner of a Firm Pays Lodging & Boarding Exps Rs.75000/- at one time only by Cheque(for his Stay in 3Star Hotel)for his Business Purpose. Whether it would be Subject to TDS U/s 194C ? or
If the Bill is Rs.175000/- whether it would be subject to TDS U/s 194I?

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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12 March 2009 Section 194C will be applicable subject to some conditions as fulfill ment of those will attract 194 I.

i.e. it should not be earmarked rooms for specified rate and specified period provided it should not be a rate contract.

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Dayal

Dayal (Expert)
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13 March 2009 You have to provide inputs on the query, Whether you have provided any software related services, if yes, please specify the nature of service.

IT services are covered under service tax for development, support amc etc....

Your inputs will enable us to clarify your enquiry.

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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17 March 2009 Service Tax on Information Technology Software Service was levied w.e.f 10.05.2008.So,you could only charge service tax after that cutoff date.

Dayal

Dayal (Expert)
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01 April 2009 Actually w.e.f. F.Y. 2008-09 service tax is made applicable on the customized software including the license part of the customized software.Additionally VAT/CST is also applicable on the license part of the customized software. So there is a dual tax in the form of VAT/CST and Service Tax on the license part of the customized software. All Companies including Oracle,microsoft etc are charging both VAT and Service tax on the license part of their software.

“Information Technology Software” Services are brought into Service Tax net with effect from 16 May 2008. The taxable service definition covers service provided to any person, by any other person in relation to information technology software for use in the course, or furtherance, of business or commerce, including

1. Development of information technology software, study, analysis, design and programming of information technology software;

2. Acquiring the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software;

3. Acquiring the right to use information technology software supplied electronically;

Dayal

Dayal (Expert)
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01 April 2009 Rate of Service tax @12.36 till 23/02/09 and post this date @ 10.3%

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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03 April 2009 If the right to use a developed / cusotmised software is what is passed on only local VAT/ CST would be chargeable and no service tax.
If it is support service of development/ implementation etc then ST would be chargeable wef 16.5.2008. For earlier period there is no levy.

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Dayal

Dayal (Expert)
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05 April 2009 I am sure your query stands closed, as all the learned friends have placed their views.

Dayal

Dayal (Expert)
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05 April 2009 closed

Dayal

Dayal (Expert)
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05 April 2009 closed