TaxTMI 
TaxTMI 
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
VAT/CST rate on software license
17 Apr 2012 
5 Replies 
15919 Views Asked by
VAT on software licenses: intangible goods classification leads to VAT plus surcharge; CST follows VAT rates.
Software licenses are treated as intangible goods in Schedule C and attract VAT at 5% under the HVAT Act with an additional 5% surcharge; interstate supplies are governed by Central Sales Tax, whose rates are linked to VAT rates. The discussion also queries whether purchases of third party software billed across state lines may attract service tax as well as CST/VAT, highlighting potential overlap between goods and service tax characterisation for software transactions. (AI Summary)
Software licenses are treated as intangible goods in Schedule C and attract VAT at 5% under the HVAT Act with an additional 5% surcharge; interstate supplies are governed by Central Sales Tax, whose rates are linked to VAT rates. The discussion also queries whether purchases of third party software billed across state lines may attract service tax as well as CST/VAT, highlighting potential overlap between goods and service tax characterisation for software transactions. (AI Summary)