TaxTMI 
TaxTMI 
Dual Taxation Concept
X X X X Extracts X X X X
X X X X Extracts X X X X
....ual Taxation Concept<br> Query (Issue) Started By: - CHITRA RAGURAM Dated:- 8-12-2010 Last Reply Date:- 8-12-2010 Service Tax<br>Got 2 Replies<br>Service Tax<br>An IT company selling software to our c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ompany raised the bill as follows: Product Value - 100 Service Tax - 10.3 VAT - 4% on 110.30 On enquiry, they replied this is dual taxation concept. Service Tax and VAT both applies for software. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Also i feel, since this is a technical service TDS to be deducted u/s. 194J. Please advice Reply By rishi mohan: The Reply: Sir, on purchase of software no tds shall be deducted while making the paym....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent, but the tds u/s 194(J) shall be deducted on installation charges. Reply By Pramod Tyagi: The Reply: Since Information Technology Software Service was covered under Service Tax in May 2008, Servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e tax has become applicable on all software services. So even if it is a sale of a software product it is covered under Service Tax. Unfotunately Right to use is also treated as a Product under VAT an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d is leviable to VAT also. So while the common belief is that it is only one of the two taxes that is leviable. In software both are levied. Yes, there is a contention whether VAT is to be levied on 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....00 or 110.3. My view is that it is to be levied on 100 since VAT includes all duties in the selling price but not taxes and Service tax is a tax that occurs at the same point of time as VAT and so it ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....should be levied on 100.<br> Discussion Forum - Knowledge Sharing ....