Software makers in a bind over tax change definition

The levy inclusion of a new category within the ambit of service tax has flummoxed the industry. Industry experts expect packaged software to attract a service tax of 12.36 per cent. Packaged software currently attracts value added tax (VAT) of 4 per cent and excise duty of 12 per cent. Customised software attracts 12 per cent as service tax.

The software industry is seeking clarification as the notification is not clear about whether