Karnataka vat query

UDAY KHEMKA (Techno-functional Consultant)   (75 Points)

08 July 2014  

We are a cloud based software company. On direct sales, we are charging Service Tax of 12.36%

Now we have appointed a distributor, whom we would be selling the software at a price. As per my accountant, we need to charge Karnataka VAT on this transaction. However, we are not sure of VAT rate whether 5.5% or 14.5%.

 

Kind let us know the correct rate and also if I am wrong anywhere.

Thanks