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Interstate taxes

Durga (Sales Manager) (26 Points)

07 August 2013

Dear Experts, I have a query regarding inter state transaction. I am a distributor for a software i would like to sell a Maintenance to existing customer.Billing is from Hyderabad and customer is at Delhi. I will add Service Tax if i am selling with in the state. Please suggest what taxes applicable for this transaction. Sasi.G

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2 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 07 August 2013

Hi,

Even for the interstate transaction, only Service tax is applicable. There is no VAT / CST applicability on Maintenance in AP.

Suri.

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Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 07 August 2013

you are providing maintainence service to your customer.It is a performence based service and as per Rule 3 and 4 of the Plase Of Provision Of Service Rules, 2012,location of service performed is Delhi.so,you should charge service tax in your bill.