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Taxtation of software selling

katokz - Member Since: Jul 2010
Subject - Taxtation of software selling
Hello Expert,

We are 100% subsidiary of foreign company.
We intended to sell software.
But we will not sell the packaged software.
We will sell only right of use. It mean that a client has to return the software when the client may not use the software.
The client pay the annual charge for use. It is not a license sale.
It is similar to the rental of the accommodation.

In this case, what kind of tax duties are raised in India?
Example Service tax, VAT and so on.

Please kindly clarify the matter.

Thanks.
Katkz


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