Deepak Patel (CA Final) (136 Points)
20 July 2013Hello frnds,
My clint has recently started his propritorship in designing website , hosting server and domains etc. I want to know whether vat is applicable for him on all the above services? He has 3 clints from saudi also so please tell me soon about the it, so that i can inform him to get register for vat and also profession tax.
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 20 July 2013
Web designing is done and transferred in the form of CD,pendrive,strip or any other form to the clients. This is taxable when sold within India. Sales done to out of the country customers is exempt,like any export.PT is applicable for all registered dealers at different rates in each state. Maximum is Rs2500/- per year....mjk
Deepak Patel
(CA Final)
(136 Points)
Replied 21 July 2013
ok.. it means vat is applicable if website is designed for indian customers in india. what wil be the rate applicable for the same and whether my clint can opt for composition scheme.
CAclubindia
