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Vat & Service tax

(Querist) 21 August 2010 This query is : Resolved 
Dear all

Please give your valuable feedback on following query:-

One of my client is in the business of development & selling of software.Software can be in the form of Branded i.e. canned software or tailor made software.

Now question is on these softwares they have to charge VAT or service Tax?
i.e. its a good or service?

Regards
Anand Sharma
B.R. BHALLA, ADVOCATE (Expert) 22 August 2010
Software is an intangible goods and the SC has already affirmed this. All VAT Acts have classified "intangible goods" taxable. It is not a service.
ANAND SHARMA (Querist) 26 August 2010
sir,

Can you please provide me a copy of Sc judgement.
s.subramanian (Expert) 27 August 2010
I fully endorse the view of Mr.Bhalla.
soumitra basu (Expert) 27 August 2010
But in new amendment in Service Tax, both service tax and VAT is payable on Software.
ANAND SHARMA (Querist) 31 August 2010
Sir,

As per Mr. soumitra basu's point of view it is a service as well as goods, but in this regard i want to point out how it is possible on one products both the taxes can be imposed i.e. service tax as well as VAT?
ON THE OTHER HAND IN THE CASE OF IMAGIC CREATIVE P. LTD. V CCT(2008) 12STT 392 (sc), IT HAS BEEN HELD THAT SERVICE TAX AND VAT ARE MUTUALLY EXCLUSIVE.
I AM UNABLE TO SATISFY MYSELF ON THIS DECISION. PLEASE GIVE ME SUITABLE VIEW SO AS I ENABLE TO SATISFY TO MY CLIENT


REGARDS
ANAND SHARMA


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