service tax on ERP software-only as IT

[skrazvi]

The judgement by SUpreme Court of India on petition bY IBM to treat its ERP tool under the IT chapter and not as management consultancy. Although effectively the rates applicable on both remain same. yet the distinction is important since many of the government agencies asking for the ERP sofwtare also presume that VAT is also applicable when this kind of tool is if not sold in market does not attract so, nor will it be attracting a works contract. Although , this asked until challenged will not be clear if such ERP tool if only designed to requirements of organization will attarct WCT(state tax) or not.