Vat or st

638 views 2 replies
Can ST and VAT be charged on ‘software license subscriptttion’ on entire amount at the same time? Vendor has given a bill in following manner. Subscriptttion 100 Vat 5 ST 12.36 TOTAL 117.36 Can we defend this bill giving following Para of Supreme Court Judgment? In the case of Imagic Creative Pvt. Ltd vs CCT Supreme Court held that. Payments of service tax as also Value Added Tax are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract as contradistinguished from an indivisible contract. It may consist of different elements providing for attracting different nature of levy. In a case of this nature, sales tax would not be payable on the value of the entire contract; irrespective of the element of service provided. [Para 28] [475-F-G]
Replies (2)

/articles/double-taxation-or-fair-taxation--9628.asp

All of the Industry  transactions carried on within a State by partnerships, individuals, companies etc. will be covered by VAT.

There are Three items - textile and tobacco - covered under Additional Excise Duties, sugar,  will not be under VAT regime for one year but the existing arrangement would Regularly.

Thanks

tcs class 3 digital signature


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register