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

Taxability of electronic software distribution: treated as a service unless delivered on physical media, subject to place of provision.
Electronic software distribution delivered online or by download is treated as a taxable service unless listed in the Negative List; taxability depends on the place of provision and the territorial location of the provider or recipient, with provider location creating supplier liability and recipient location potentially attracting reverse-charge. Software supplied on physical media or embedded before sale is treated as goods and attracts sales tax rather than service tax.