Taxation of IT software services: development, licensing or online delivery taxed, while packaged copies treated as goods. Services for development, design, programming, customisation, adaptation, upgradation, enhancement and implementation of information technology software are taxable as a declared service when the transaction is essentially provision of service rather than only a transfer of title in goods. Pre-packaged or canned software delivered on a physical medium is treated as goods and excluded, whereas licenses, online delivery, consultancy, and customised development (even if delivered on media) are taxable if they do not amount to a mere transfer of right to use goods or transfer of title.
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Provisions expressly mentioned in the judgment/order text.
Taxation of IT software services: development, licensing or online delivery taxed, while packaged copies treated as goods.
Services for development, design, programming, customisation, adaptation, upgradation, enhancement and implementation of information technology software are taxable as a declared service when the transaction is essentially provision of service rather than only a transfer of title in goods. Pre-packaged or canned software delivered on a physical medium is treated as goods and excluded, whereas licenses, online delivery, consultancy, and customised development (even if delivered on media) are taxable if they do not amount to a mere transfer of right to use goods or transfer of title.
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