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Typically, VAT is charged on material and service tax is charged on labour component and in case if the invoice does not specify both separately. Then there are benchmarks in laws , as to what % should be considered as material and what % should be considered as labour component. Hope this is clear.
| | | ---------------Original Message---------------
From: asha shunmugham
Sent: Monday, July 25, 2011 4:36 AM
Subject: Vat and service tax
Is it right to charge both VAT and Service Tax on the license part
of the customized software? |
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