Tds on software purchased??

SANJAY (CHARTERED ACCOUNTANTS) (943 Points)

03 May 2012  

Please guide me that whether TDS is applicable on Purchase of Software (i.e. Tally ERP). As the Invoice bill of Tally Solutions is as under:

Software (Tally ERP) Cost = Rs.50000/-

Service Tax @ 12.36%=Rs.6180/-

Central Sales Tax @ 5% On (50000+6180) =Rs.2809/- 

Total = 58989/-

I also want to know why the CST charged on Service tax? Whether co. can charge the tax on tax?

Please reply soon as its urgent??

Thanks in advance..