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

Tax overlap prohibition: VAT and service tax cannot both apply to a single software license transaction. The operative reply states that both taxes cannot be imposed on the same transaction; only one levy will apply to the sale or licensing of software, concluding a mutually exclusive application of VAT and service tax to a single software license sale.