in Maharashtra VAT Act, vat is 5% on IT product ( IT product as notified by state government time to time). and Software is covered under IT product at serial no.14( link for notification for IT product- http://www.mahavat.gov.in/Mahavat/MyFold/KNOWLEDGE%20CENTER/NOTIFICATIONS/KNOW_NOTIFI_MVAT/NOTIFICATION-MVAT-2005-016.pdf ).
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