Software development

This query is : Open

VINITHA RAJESH (Querist)
Follow

31 January 2011 A company is doing the business of software game development. The games will be downlaoded by the the ultimate customers through an intermediary channel.

Is this business a service and taxable under Service Tax

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

31 January 2011 As of now it could come under ITSS service though there is doubt whether VAT is also chargeable.

VINITHA RAJESH

VINITHA RAJESH (Querist)
Follow

01 February 2011 Thanks.

As per my knowledge, the software developed will be treated as a product and will be taxable under VAT.

There is no service rendered by the company.

Can the same item be taxable under VAT and Service Tax

Upgrade to CAclubindia Pro. Subscribe Now!

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
Follow

01 February 2011 Yes, it can be taxable under VAT and Service tax by analysing the definitions under ITSS and sale.

VINITHA RAJESH

VINITHA RAJESH (Querist)
Follow

17 February 2011 Hi,

The deinition of "goods" as per Central Excise Act specifies items which are movable and can be bought and sold and also marketable.

Here a new product is being developed from the process.Will this game software developed by the company fall under the definition of "goods" and be taxable as per Central Excise Act.

As per ITSS, the service should be done by one person to another person. Please advice whether my understanding is correct or not.