Service tax + vat
This query is : Resolved
04 December 2014
Does Service tax + vat charged on purchase of autocad software, & tds should be deduct or not??
04 December 2014
Usually the Vendors charge VAT and Service Tax for selling of software. TDS is applicable unless the same is exempted vide notification 21/2012 dated 13-06-2012
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04 December 2014
Agreee but i want to know that both taxes are charged on basic amt or basic+s.t=total +vat
04 December 2014
Whether vat is to be collected on base value or value including service tax will vary based on each State’s VAT laws and Case Laws. In the state of Kerala, department has clarified that Service Tax paid would form part of the sale price and consequently would form part of the turnover of the dealer, and chargeable to Kerala Value Added Tax. (ORDER No.C3/4174/10/CT DATED 31/3/2010) Link-http://www.keralataxes.gov.in/clarification/4174.KVAT.10.pdf
09 December 2014
both tax charge on the software due to software is article under the vat act and service tax under the service tax act.
tds not deducted due to you see the declaration on the invoice on the vendor that he don't make any change in the software and under notification of income tax its exempt.
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART-II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION NO. 21/2012 [F.No.142/10/2012-SO(TPL)] S.O. 1323(E), DATED 13-6-2012
In exercise of the powers conferred by sub-section(1F) of section 197A of the Income-tax Act, 1961 (43 of
1961), the Central Government hereby notifies that no deduction of tax shall be made on the following
specified payment under section 194J of the Act, namely:-
Payment by a person (hereafter referred to as the transferee) for acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where-
(i) the software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,
(ii) tax has been deducted-
(a) under section 194J on payment for any previous transfer of such software;or
(b) under section 195 on payment for any previous transfer of such software from a non-resident, and
(iii) the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
2. This notification shall come in to force from the 1st day of July, 2012.
(J. Saravanan)
Under Secretary(TPL-III)
tds not deducted due to you see the declaration on the invoice on the vendor that he don't make any change in the software and under notification of income tax its exempt.
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART-II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION NO. 21/2012 [F.No.142/10/2012-SO(TPL)] S.O. 1323(E), DATED 13-6-2012
In exercise of the powers conferred by sub-section(1F) of section 197A of the Income-tax Act, 1961 (43 of
1961), the Central Government hereby notifies that no deduction of tax shall be made on the following
specified payment under section 194J of the Act, namely:-
Payment by a person (hereafter referred to as the transferee) for acquisition of software from another person, being a resident, (hereafter referred to as the transferor), where-
(i) the software is acquired in a subsequent transfer and the transferor has transferred the software without any modification,
(ii) tax has been deducted-
(a) under section 194J on payment for any previous transfer of such software;or
(b) under section 195 on payment for any previous transfer of such software from a non-resident, and
(iii) the transferee obtains a declaration from the transferor that the tax has been deducted either under sub-clause (a) or (b) of clause (ii) along with the Permanent Account Number of the transferor.
2. This notification shall come in to force from the 1st day of July, 2012.
(J. Saravanan)
Under Secretary(TPL-III)
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