Software sale

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2013 Hi,

Can I please have a response to a query regarding software sales.

Mine is a pvt ltd co, into software development.
We develop customised software.
1. Professional fees: both service tax and vat
2. license fees-vat and also service tax only if remitted electronically (not thru cd/pendrive)
3. AMC-service tax and also vat if product is involved.
Kindly let me know if this is correct.

Thanks and regards,
Vidya

CA Nagaraj Bhat

CA Nagaraj Bhat (Expert)
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27 March 2013 For software development service tax is applicable, since it is covered under declared service. So above said points are correct.

CA Nagaraj Bhat

CA Nagaraj Bhat (Expert)
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27 March 2013 For software development service tax is applicable, since it is covered under declared service. So above said points are correct.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Sir,
Thanks for your reply.

From what I understand, both VAT plus service tax on license fees and professional fees.

In case of AMC, VAT on 75% and service tax on entire amount,(the reason being that most AMC will involve coding, which also is a product, so to be on the safer side it is better to charge both taxes on the AMC fees. (as of now AMC is said to be only for maintenance, but I feel better to charge both vat at 75% plus service tax on entire)

Pl confirm.
Thanks once again.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Also, please confirm if tds is applicable on software..
Thanks,
Vidya