service tax on ESD (electronic software distribution)

[rajesh rathore]

Dear Sir,

Please advise us that is it both service tax and sale tax can apply to ESD software i.e. Electronic software distribution or only one can applicable as per current tax policy in india.

Regards

Rajesh Rathore

MPACI, Neemrana.

Rajasthan, India.

AI Summary

Debate on Taxation: Is Electronic Software Distribution in India Subject to Service Tax or Sales Tax? A discussion in a forum revolves around whether service tax or sales tax applies to Electronic Software Distribution (ESD) in India. The initial query seeks clarity on the applicable tax. Responses highlight that ESD is a service, and its taxability depends on whether it is provided in a taxable territory. It is noted that services not in the Negative List are taxable. Further clarification is provided, stating that software on physical media is treated as goods and subject to sales tax, while online software distribution is treated as a service, thus subject to service tax.