Volume II

Issue : 22: November 18, 2004

• European Court of Justice Releases Decisions on Scope of Database Protection
• Idaho Obtains Judgement to Permanently Ban Fax Spammer from State
• UPS and Other Couriers File Suit against Maines Tobacco Sales Law
• Indian Supreme Court Finds Computer Software a Good not a Service
• FCC VoIP Ruling Removes Regulatory Power from the States
• Privacy Commissioner of Canada releases Annual Report
• Dow Jones Settling Internet Defamation Case by Gutnick
• B.C. Privacy Commissioner Releases Report on U.S. PATRIOT Act
• Ontario Judge Awards Significant Damages in Cyber libel Case
• WTO Report Finds U.S. in Breach of GATS over Online Gambling Dispute
• Judge Finds Content from the Internet Archive Website Admissible

Home > Volume II > Issue 22: November 18, 2004 > Indian Supreme Court Finds Computer Software a Good not a Service

Indian Supreme Court Finds Computer Software a Good not a Service

A recent Supreme Court ruling from India has held that computer software should be considered a "good" and is therefore subject to the tax provisions of the Sales Tax Act. Tata Consultancy Services, an international information technology consultancy and services company, challenged the application of the Sales Tax Act to computer software, arguing that software is nothing more than knowledge, and therefore, should not be considered a "good" for taxation purposes. The Supreme Court disagreed and found that a person purchasing a CD off the shelf is not merely purchasing the CD itself, but rather is purchasing the software contained in the CD, making the entire purchase a "good".

The effect of this judgment is limited however, as it only applies to "off-the-shelf" software and not custom created software, which comprises 90% of India's software sales.

For additional details, please see:

http://www.hinduonnet.com/thehindu/holnus/002200411051750.htm