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TMI BlogDual Taxation ConceptX X X X Extracts X X X X X X X X Extracts X X X X ..... An IT company selling software to our company raised the bill as follows: Product Value - 100 Service Tax - 10.3 VAT - 4% on 110.30 On enquiry, they replied this is dual taxation concept. Service Tax and VAT both applies for software. Also i feel, since this is a technical service TDS to be deducted u/s. 194J. Please advice - Reply By rishi mohan - The Reply = Sir, on purchase of softw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are no tds shall be deducted while making the payment, but the tds u/s 194(J) shall be deducted on installation charges. - Reply By Pramod Tyagi - The Reply = Since Information Technology Software Service was covered under Service Tax in May 2008, Service tax has become applicable on all software services. So even if it is a sale of a software product it is covered under Service Tax. Unfotunately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Right to use is also treated as a Product under VAT and is leviable to VAT also. So while the common belief is that it is only one of the two taxes that is leviable. In software both are levied. Yes, there is a contention whether VAT is to be levied on 100 or 110.3. My view is that it is to be levied on 100 since VAT includes all duties in the selling price but not taxes and Service tax is a tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that occurs at the same point of time as VAT and so it should be levied on 100. - Dual Taxation Concept - Query Started By: - CHITRA RAGURAM Dated:- 8-12-2010 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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