Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARDS :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: due date for vat payment :: cpt
 
 
Service Tax »
 Changes In Central Goods And Services Tax Rules, 2017
 Simple tax made complex
 Govt may review monthly GST return filing process
 Central Goods and Services Tax (Eleventh Amendment) Rules, 2017
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017
 Composition Scheme - the Central Goods and Services Tax (Removal of Difficulties) Order, 2017
 Govt asks taxpayers to file GST return for July by Tuesday
 FAQ On Government Services Under GST
 Income Tax Appellate Tribunal, Visakhapatnam Bench List Of Division Bench Cases Posted Before During The Period From 03rd Octombar To 13th October , 2017.
 Facility of LUT extended to all exporters / registered persons subject to conditions
 GST implementation – Hasty turns out nasty

Software firms confused over service tax
June, 18th 2008

Inclusion of a new services category--Information Technology Software Services-- within the ambit of Service Tax legislation has created confusion among the software firms in India. The levy of this new service along with other services has become effective from May 16, 2008.

Post the notification many feel that from May 16, 2008, packaged software will attract 12.36 per cent of service tax. So far, packaged software attracts Value Added Tax (VAT) of 4 per cent and 12 per cent of excise duty.

The confusion arises as the notification does not make a clear demarcation of whether software' is to be sold as a good and hence liable for sales tax (VAT) or considered as services' and liable for a service tax.

Packaged software are products that are sold off the shelf. Some of the products that would fall under this are from, Microsoft, Autodesk, Adobe and several security software packages for the computers. This will also include accounting software from Tally.

According to industry players service tax, payable to the central government, is applicable when a service is offered. While VAT is applicable when a product is sold.

Som Mittal, President, NASSCOM said: "Service tax, VAT, excise duty all are issues that have come up relatively recently in our sector and sometimes there may be possible anomalies in these. Since software is sold both as a product and service, it is liable to be subject to multiple interpretations, such as the case now. NASSCOM is continuously working towards solving such issues on an ongoing basis. We are in discussion with the various stakeholders on this issue as well and are looking at resolve it at the earliest."

Software providers, distributors, vendors and customers are all in a state of confusion and are waiting for some sort of clarification from the government. "The recent announcement has no clarity as to the implications. How can one ask for service tax on something that has been declared as goods? Besides there is no clarity whether VAT is to paid on service tax or the other way round," said a spokesperson of a leading distribution firm.

When contacted Microsoft, a spokesperson said: "The government has made its policy clear that it intends to subject all software to either service tax or excise duty. Certain aspects of the new service tax provisions are not very  clear with respect to their application to software products. We intend to work with industry organisations towards  getting a clarification from the government. Regarding impact on our distribution channel, service tax paid by both service and manufacturing sectors is generally available as an input credit, so cascading impact of the new levy should be limited."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions