Service tax vs vat

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2013 Dear All,

Please clarify this question.

A company purchases Hand-devices (like electricity billing devices). It loads software in the devices and sells to others. It also provides database server to the customers who has purchased the hand-devices. It collects subscription charges fothat. Now my question is whether VAT or Service Tax applicable on the sale of the devices.

Thanking you.

CA Vipin Jain

CA Vipin Jain (Expert)
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28 January 2013 Hi,

In my opinion on sale of Device only vat should be applicable as the company selling a goods with software.

On subscription for Database server service tax should be applicable.

above opinion based on facts mentioned in query, these may change on the basis of contract of company and purchaser.

regards

CA Vipin Jain