banner_ad

Tds, cst and s.tax on software development

TDS 2178 views 1 replies

A Company has installed an accounting software i.e. ERP and payment is being made in installment. The software company has charged both CST & Service tax on his part bill. My queries are...

(i) Whether TDS is applicable ?

(ii) Is it possible to charge both service tax and CST in the same bill ?

(iii) If service tax applicable, whether input of service tax avialable ?

(iv) Can bill be made seperately, one for software sale after charging CST and another for service charges & installation after charging service tax. If it is possible then comment on TDS applicability.

Replies (1)

HI,

First things is as per cst act, Branded softwares are held as "goods" . Hence, software portion of the bill should be charged with CST not services.

1) TDS is applicable in the service part.

2) yes, but both should be mentioned separately .  service tax should have to be charged on labour charges or services and cst should be on software sale. Make sure that service tax is not mentioned on the total bill and cst is also is not mentioned on total bill.

3) yes, input of service tax can be taken as credit.

4) yes, they can.

regards,

Jafer

(i) Whether TDS is applicable ? (ii) Is it possible to charge both service tax and CST in the same bill ? (iii) If service tax applicable, whether input of service tax avialable ? (iv) Can bill be made seperately, one for software sale after charging CST and another for service charges & installation after charging service tax. If it is possible then comment on TDS applicability.

Read more at: /forum/tds-cst-and-s-tax-on-software-development-233898.asp#.UOmqt3fBZdg


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
02 May 2026
Experience Audit Manager

AGGARWAL SAMIR & CO

New Delhi

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details