Dual taxation on software

Queries 1253 views 1 replies

Asif Khan

Taxation executive

410 Points Joined December 2008

Dear Friends,

We have purchases E-TDS software licence from a company for TDS purpose. We have got the invoice of the same in which they have charged VAT @ 5% plus Service Tax @ 12.36% in the same bill.

Is it correct??? Can we charge both Service tax and Vat on Software Licence

Replies (1)

Guest

If you just purchased the software without any customization then no service should be chargeable else service tax is applicable on the labour used for customization according to your need.