TaxTMI 
TaxTMI 
LEVY OF VAT AND SERVICE TAX: COMPANIES LIKE ORACLE HAVE STARTED LEVYING BOTH VAT AND SERVICE TAX ON SOFTWARE LICENCES SUPPLIED BY THEM. AS PER SUPREME COURT JUDGEMENTS IN OUR OPINION VAT AND SERVICE TAX BOTH ARE NOT LEVIABLE AND VAT ON PRODUCT AND SERVICE TAX ON SERVICES AS THERE IS NO CHANGE IN LAW ON INTRODUCTION OF IT SERVICES UNDER SERVICE TAX FROM CURRENT YEAR MAY 08. GRATEFUL TO HAVE YOUR VIEWS
Levy of Vat and Service Tax
22 Nov 2008 
4 Replies 
4989 Views Concurrent taxation prohibition: VAT and service tax cannot be levied concurrently on the same software supply.
Concurrent levy of VAT and service tax on the same software licence supply is not permissible; the taxable value should be bifurcated into a sale component (subject to VAT/excise) and a service component (subject to service tax), and authorities and accounting principles are sought to guide that allocation. (AI Summary)
Concurrent levy of VAT and service tax on the same software licence supply is not permissible; the taxable value should be bifurcated into a sale component (subject to VAT/excise) and a service component (subject to service tax), and authorities and accounting principles are sought to guide that allocation. (AI Summary)