20 August 2009
Dear Sir/Madam, If there is a comprehensive contract, to develop a product, develop software for the same, testing, training the personnel of the buyer with the to using the buyer,installing the same and maintenance of the same. Can you please suggest the category under which these services shall be taxable?? Another query that, how is taxable value of ITSS derieved..
20 August 2009
Since thew contract is comprehensive it would only be liable for VAT. However disputes possible from Service tax since services are also involved.
It is advisable to bifurcate the same and get the same confirmed by the buyer/ client and pay VAT on the software transferred and charge ST for the training, AMC etc.
CAclubindia
