software is a service?

gemguy · Sep 6th, 2007, 08:16

Hi,

Basically im from india. Here we suffer service tax for the service oriented business. And now i have a slight confusion where software is a service or it is a sales?... Question may be little silly but im far apart from the tax and government norms regarding the software business.

Also i dont know whether its a right place to ask my question. i request the moderator to change the post to suitable forum topic..

I like someone to give a prompt reply

Gemguy

Daniel · Sep 6th, 2007, 10:03

Software is a sales as you sell it. The service is the support given for that software.

Marc · Sep 6th, 2007, 18:02

Depends because can 'service' not be classed as you making the software as well as supporting it?

alexgeek · Sep 6th, 2007, 21:24

Plus we're from different countries so your law system may interpret it diffrently.

stevev · Sep 19th, 2007, 11:19

As far as I know, if you're a UK business and you're VAT registered you charge VAT on sales and services regardless. When you start crossing boarders things start to get more complicated. If you sell your UK software to EU countries you still charge standard rate VAT up to £50k per year per country, after which you have to apply for VAT status in that country.

I'm not sure how things work selling software from India but take a look at Revenue and Customs site.

-Steve

www.shopformat.com