Service tax & sales tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2014 If an IT company manufacturing a software and selling to client. and that client will be selling to customers. which tax will be applicable?

only service tax, only sales tax or both.

Company situated in Madhya Pradesh.

Sandeep Dharar

Sandeep Dharar (Expert)
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05 May 2014 Only Sales TAx will b applicable, coz any service has not been provided.

Sushil Kumar Shaokand

Sushil Kumar Shaokand (Expert)
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05 May 2014 Hello Dear.
Software development and sale of the same is covered under Service Tax vide Notification No. 18/2008-S.T., dated 10.05.2008.

It doesn't attract the Sales Tax as Sales Tax is applicable on goods which can be physically delivered.

Service tax may be exempted if your company is registered under STPI or SEZ etc.
Regards.
Sushil

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