Applicability of service tax and vat

[Deepak Goel]

Please tell me whether VAT and Service Tax will be charged on Computer Software License under Information Technology Service. If yes, then there is any notification/ circular under Delhi VAT and service tax. Deepak Goel

[Surender Gupta]

There can not be both the taxes on the same transaction. Only one tax either VAT or service tax can be levied on sale of software (license.

AI Summary

Clarification Issued: Only VAT or Service Tax Can Be Levied on Software License Sales, Not Both A query was raised regarding the applicability of VAT and Service Tax on computer software licenses under Information Technology Services. The response clarified that both taxes cannot be applied to the same transaction. Only one tax, either VAT or Service Tax, can be levied on the sale of software licenses.