Get ready to pay more for software- The Economic Times
Software Taxation: Does Indian Software industry come under the product or a service sector. Commercial off the shelf software [COTS] products of TCS, Infosys, Iflex will be charged with sales tax. This will increase the cost of COTS. My question is will this move be succesful considering the fact that many products are customised into services by software companies. Software firms will use this loop hole. This will adversely affect the growth of an industry which is struggling for long to break into the global product league. The Supreme court judgement will not encourage software industry to become product centric. This ruling will add to the debate on Intellectual Property Taxation. Indian software industry will now move towards sunshine services sector. But they can run but not hide!
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