VAT/CST rate on software license

[Reshma kochar]

Dear Experts,

Do let me know the current HVAT/CST rate as applicable, in case a software company is providing its own softwares to its clients. 

Regards,

Reshma

AI Summary

Software Licenses Taxed at 5.25% Under HVAT Act; CST Rates Match VAT for Interstate Sales. A discussion on the applicable VAT and CST rates for software licenses reveals that under the HVAT Act, software licenses are taxed at 5% VAT with an additional 5% surcharge, making the effective rate 5.25%. For interstate sales, CST rates align with VAT rates. A query about purchasing third-party software in Delhi and billing it to a customer in Gurgaon raises questions about applicable taxes, including service tax and CST. A participant suggests consulting an external resource for further clarification.