Please Help: Service Tax / Sales Tax on Software Sale
Posted Date : 31-May-2012 , 02:22:13 pm | Posted By: Anmol Rana
Category :
VAT | Answers :
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Comments :
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What tax is applicable on sale of software......?
Whether sales tax will be applied or service tax....?
Please guide... |
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| Posted By : Arihant |
06-Jun-2012, 08:08:04 |
| The amount in cost charged which relates to service. |
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| Posted By : Anmol Rana |
05-Jun-2012, 03:24:41 |
| Dear Arihant,
Yes but question is that at what amount service tax is payable.....? |
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| Posted By : Arihant |
04-Jun-2012, 06:54:29 |
| Yeah!
this can happen but and the tax had been charged already on the amount at which the software was sold, Including the amount of service which he is providing now.
in this we shall consider point of taxation Rules of the service tax.
which says that service is taxable on the earlier date from the following- date of receiving the payment or date of providing the service. |
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| Posted By : Anmol Rana |
04-Jun-2012, 06:03:10 |
| Client is saying he will not charge any amount for one year service. But some officials says that at the time of sale of software, you earn profit element. Out of which some profit relates to free of cost service........
Please suggest..... |
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| Posted By : Arihant |
31-May-2012, 07:17:55 |
| You are saying that the he will provide free of cost service, then there is no need to charge service tax.. |
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| Posted By : Anmol Rana |
31-May-2012, 03:38:45 |
| Dear Arihant,
In case of sale of a software, provider is giving back up support for one year at free of cost. then whether it wouuld be liable for service tax if yes at what amount service tax should be paid..? |
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| Posted By : Arihant |
31-May-2012, 03:03:22 |
| Yes, under sec 65(105)(zzzze), any service provided relating to software like, upgrading, development and any other service shall be chargeable to service tax.
and if there is sale of software in standard form then it will be subject to VAT n also manufacturer has to pay exice duty and if it has been imported, custom duty is also to be paid. |
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| Posted By : Arihant |
31-May-2012, 03:02:09 |
| Yes, under sec 65(105)(zzzze), any service provided relating to software like, upgrading, development and any other service shall be chargeable to service tax.
and if there is sale of software in standard form then it will be subject to VAT n also manufacturer has to pay exice duty and if it has been imported, custom duty is also to be paid. |
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