a person is charging CST and Service tax on software purchase where good and services are not sepratly byfurcated in the bill so whether he can charge CST and service tax on same amount in one bill ?
MANISH MAROTHIYA (Trainee) (37 Points)
25 March 2011a person is charging CST and Service tax on software purchase where good and services are not sepratly byfurcated in the bill so whether he can charge CST and service tax on same amount in one bill ?
Pinky Agarwal
(Chartered Accountant)
(426 Points)
Replied 25 March 2011
As per my view, bifurcation should be given in bill.. He cannot charge both without bifurcation..
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 26 March 2011
If the item is such which is service as per service tax act and goods as per local VAT act then bifurcation is not required. As goods and services would be having the same value.
Rajesh Sharma
(Practicing CA)
(150 Points)
Replied 26 March 2011
This is a typical scenario in software industry, basically VAT / CST is chargeable on the goods part i.e. in case of software its the media (CD, DVD etc) and service tax is chargeable on the right to use part as covered by information technology software category. However, as per the industry practice, a bifurcation is provided on the invoice as regard to consideration related to media and license.
RAHUL CHOUDHARY
(ACCOUNTS OFFICER)
(27 Points)
Replied 19 April 2012
When you are purchasing pre designed sofware from market then only vat will be applicable .If you are asking vendor to make software accoding to your need(customised software) service tax will be applicable.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India