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

Software tax treatment: VAT on physical packaged copies; service tax on installation and imported downloads.
VAT applies to software supplied in physical form (packaged copies or media) sold to customers, while service tax applies to installation, guidance and other ancillary services. Downloaded software from overseas is treated as import of service and may attract service tax; downloaded software from domestic suppliers may lead to supplier liability for service tax. Characterisation depends on delivery format, contractual terms, allocation of charges, and whether software is customised, licensed on paper, or provided with media.