Hello
I have a few calarifications on VAT/CST -
1. As per the circular of June 01, 2008, CST has been reduced to 2%. Is the CST on Computer Hardware/Software 2% or 4%?
2. If one buys from a state outside of which he is registered as a VAT dealer (having a TIN for CST and VAT), he is generally charged 4% CST (or whatever rate is applicable as per Q1).
2a. If the dealer buys at 4% CST and sells at 4% CST (outside state customer) then can the input and output taxes (CST) be offset?
2b. If he buys at 4% CST, and sells to a customer in the state in which he is registered, can he offset 4% CST against 4% VAT?
3. If someone buys an electronic license key transmitted on email for a softare downloaded from the Internet, can he charge CST/VAT to customer @ 4%? The payment ot the foreign OEM of the software is made in $, and no customs is paid as there is no shipment of the software.
4. What is the tax on software licences electronically distributed (no physical shipment) bougtht and sold in India? Is is 12.36% Service Tax + 4% VAT/CST?
regards
S Mittal
CAclubindia
