service tax

DEEPAK MALHOTRA (PROFESSIONAL) 02 April 2008

in budget 2008-2009,it had come in bracket of service tax.packaged software it means companies which provide packaged softwares would charge service tax at rate of 12.36%. companies which provide softwares would charge service tax it is service and goods both

Guest (n/a) 03 April 2008

As per the supremme court decision on ACC software was considered in defenation of goods, if it is sold with any media like cd, then it is a movable

Rajesh Kumar (Advocate) 04 April 2008

Goods are tangible- you can touch it, feel it, see it; services are intangible. The confusion arises because many goods are required to provide the services and many services are needed to manufacture the goods. To understand the exact nature of tax incidence, we must first realise as to what are we trying to tax- and then the answer is clear. A packages software is "goods", like microsoft windows. However, if some person provides you service related to software- say developing a programme for you, it becomes a service.

K.Prakash Babu (Advocate) 30 April 2008

Software is both a 'goods' and 'service'. It is goods when it is mass market product which is available in the market readily. It is useful for your general requirement like 'Tally" or any other packaged software. But the software which is made specifically to suit your peculiar requirements, is tailor made one and it falls under specific software. Nowthat both the excise duty on packaged software and the service tax on the specific software has been made on par with each other in order to boost govt. revenue and to plug any loopholes.

Guest (n/a) 28 May 2008

Software is both 'goods' and 'service'. For simplification:- Under Excise - software (whether Package or customized) is treated as goods for charging excise duty; Under Service Tax - Package Software is treated as goods while customized software is treated as service. However, software sold through online media is treated as service only. Under VAT - Package software is subject to tax, while customized software is exempt. Big Question (confusion) - When software is Package Software and when it is a customized is still a big question.

(Guest)

ACC case has been clarified in Tata Consultancy Services case, where Justice Sinha, has given a brief statement on this issue. Also check recent decision of Imagic Creatives Private Limited by the supreme court. where it is held both service tax and VAT cannot act of same matter.

V Ramanujam (Service) 30 May 2008

As per Finance Act 2008, it is covered under Information Technology service. As far as query of whether it is a 'sale' or 'service', I feel it would open an another pandoras box of disputes. The best possible legal solution would be to levy VAT/sales tax on the 'licence cost' of the software, while development, customization and other charges (which are not subject to VAT/salestax )may be covered under Service tax.

V Ramanujam (Service) 30 May 2008

As per Finance Act 2008, it is covered under Information Technology service. As far as query of whether it is a 'sale' or 'service', I feel it would open an another pandoras box of disputes. The best possible legal solution would be to levy VAT/sales tax on the 'licence cost' of the software, while development, customization and other charges (which are not subject to VAT/salestax )may be covered under Service tax.

Guest (n/a) 02 June 2008

What about renewal of software is it goods or service?

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