VAT on invoices raised by IT service provider

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2010 Services provided by ITeS are liable to Service tax but whethere these are liable to VAT also? Isn't that result in double taxation?

B R Ramesh

B R Ramesh (Expert)
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13 November 2010 Hi

it is not a double taxation

the concept is normally ITES are included service as well as sales.

therefore we need charge both VAT & Service tax .

for example if you buy a software from IBM or Redington, HP,
the software is product sold to you VAT is charged and it has made customisation as you want the service tax will be charged.