Inclusion of a new services category--Information Technology Software Services-- within the ambit of Service Tax legislation has created confusion among the software firms in India.


</p><tr><td><p class='TableClas'></p><P class='TableClas'> <DIV CLASS=rightDiv><script language="JavaScript">
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		<script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
		</script> </DIV><p class='TableClas'>Post the notification many feel that from May 16, 2008, packaged software will attract 12.36 per cent of service tax. So far, packaged software attracts Value Added Tax (VAT) of 4 per cent and 12 per cent of excise duty. </P>
</p><p class='TableClas'>The confusion arises as the notification does not make a clear demarcation of whether 

Software firms confused over service tax

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