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.