https://www.taxtmi.com/caselaws?id=447154 An agreement for bug fixing, maintenance and support of ERP software was held to be a contract of service rather than a sale of software under the Maharashtra Value Added Tax Act, 2002. The work was limited to providing manpower and maintenance on the client's servers, with remuneration calculated per person per month, and did not involve transfer of ready-made or marketable software. Because all work products and materials became the client's exclusive property from inception, and no independent ownership or right of sale arose, the arrangement merely restored existing software functionality and did not create a new commercial commodity. The authorities were therefore wrong to treat the transaction as exigible sale. en-us Mon, 18 Dec 2023 00:00:00 +0530 Tue, 12 May 2026 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447154 An agreement for bug fixing, maintenance and support of ERP software was held to be a contract of service rather than a sale of software under the Maharashtra Value Added Tax Act, 2002. The work was limited to providing manpower and maintenance on the client's servers, with remuneration calculated per person per month, and did not involve transfer of ready-made or marketable software. Because all work products and materials became the client's exclusive property from inception, and no independent ownership or right of sale arose, the arrangement merely restored existing software functionality and did not create a new commercial commodity. The authorities were therefore wrong to treat the transaction as exigible sale. Case-Laws VAT / Sales Tax Mon, 18 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447154