On Mon, Jun 30, 2008 at 4:47 PM, Kenneth Gonsalves <[EMAIL PROTECTED]> wrote:

> question is: when you 'sell' FOSS do you charge VAT or do you charge
> service tax. We recently 'bought' a FOSS package for 3 lakhs. We were
> charged service tax to the tune of 36,000. If we had 'bought' a
> proprietary package we would have paid sales tax at 4% or 12,000. (at
> that time there was no VAT in tamilnadu).
>
>
> --
> regards
>
> Kenneth Gonsalves


DGS&D (Directorate General of Supplies and Disposal, Government of
India) has a rate contract for Redhat Enterprise Linux and Suse
Enterprise Linux.

If the above two are considered FOSS, as per the terms and conditions,
the prices mentioned are inclusive of CST / 4% VAT.

I believe the two are FOSS. And as per the GoI contract document, it
is VAT instead of Service Tax!! If you were to <emphasis> interpret
more closely </emphasis>, it means most Government Departments are
ending up buying FOSS, and that too as a Proprietary Software!!! In
fact, it seems it is easier for the seller to propose them as
Proprietary Software, and buyer to ask the seller saying that it is a
Proprietary Software, to facilitate easy purchase within his
organisation. All for the Government records!!! Moreover I am not sure
how many purchase officers can tell the difference between the two and
how.



anand

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