There is confusion about the applicability of taxes on the sale of packaged products such as ERP software. Prior to May 2008, only VAT was applicable. However, an Uttar Pradesh (UP) government notification created confusion and partners were advised to charge both VAT and ST. There is no clear information available. In the meantime, we have managed to charge some, but failed to collect taxes from others. How do we solve this problem?
Ajay Mian, All e Technologies
T G RAMESH — Most of us have been facing this problem. It is prevailing not only in UP but also in other states. Several associations have taken up the matter with Nasscom and the finance ministry. We can expect some positive developments once the new government is formed after the elections. In the meanwhile, this being a statutory levy, it has to be passed on to customers otherwise the liability will be on us. |