Software Licences
Parthasarathi Loganathan
(Querist) 23 March 2010
This query is : Resolved
QUESTION POSTED BY MR.G.N.MURALIDHAR IN THE NEWS TODAY
Hello learned friends,
I am the legal manager of a software firm. As part of our IT solutions, , we buy/obtain license/sub license soft ware and customise/implement the same to our clients.
In a recent instance, the entity from whom we buy the software has charged Service Tax over and above the applicable CST. They might give online support in future if the need arises.
My question/doubt is whether they are entailed to charge Service Tax as per-se they have not done any customisation on the soft ware being bought from them?
Parthasarathi Loganathan
(Querist) 23 March 2010
The vendor is entitled for Service Tax as any Software Vendor as it is mandatory for them to render online Support or furnish Read Me document embedded in the software itself to become eligible for payment of service tax.
