Service Tax & VAT applicability on standard software purchase like windows
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....ervice Tax & VAT applicability on standard software purchase like windows<br> Query (Issue) Started By: - Manish goyal Dated:- 17-6-2011 Last Reply Date:- 17-6-2011 Service Tax<br>Got 1 Reply<br>Servi....
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....ce Tax<br>We have purhased windows software, vendor is charging 5% VAT & 10.3% Service tax, both on basic sale value. Is this right. Reply By Vijay Chitte: The Reply: NO, but require come forward f....
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....or letigation. As per state act software is goods which is specifided schedule entry in respective state Act and subejct to sale tax. As per Service tax act, sale of software is a service by reason....
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.... that "there is no sale of software as such as entire property in software is never passed on to buyer, Only right to use is transferred, There will be "Sale" of software ONLY if souce coad and entire....
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.... property in software is transferred to buyer.  So that vendore are charging both taxes, At least this strategy would satisfied both the departments to avoid unneccessary letigation, But i ag....
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....reed that this would lead to double taxation and passing of both VAT and Service tax burden to the customer.<br> Discussion Forum - Knowledge Sharing ....