Service Tax & Vat Bot charged on Window 8.1 Professional purchased

[MITSUI PRIME ADVANCED]

Dear Sir

We have to buy window profession for 20 users and vendor has make the invoice. His calculation of invoice is

Price of Window: 216420

Service Tax 12.36%: 26750

Vat @5%: 12158

Total 255328.00

Kindly confirm he make correct calculation of tax.

Regards

Lokesh Kumar

AI Summary

Clarification Sought on Tax Calculations for Windows 8.1 Purchase: Service Tax on Installation, VAT on Sale A query was raised about the correctness of tax calculations on the purchase of Windows 8.1 Professional for 20 users. The invoice included a service tax of 12.36% and VAT at 5%. Emco Ltd. confirmed the tax calculations as correct, attributing service tax to installation services and VAT to the product sale. However, another consultant requested clarification on the software's delivery method and associated charges to finalize their opinion. Additional responses discussed the applicability of taxes based on the software's form and delivery method, highlighting the complexity of tax obligations for software transactions.