Software sold without Customization qualifies as ‘Supply of Goods’: AAR [Read Order]

Software - AAR - Taxscan

The Karnataka Authority of Advance Ruling (AAR) ruled that the supply of software which is not designed and developed specifically to any customer and sold without customization qualifies as “supply of goods” and “supply of computer software as goods”.

The applicant, M/s Solize India Technologies Private Limited is engaged in the purchase of software from their principal partner and supplies the same to their consumers. The conditions of an agreement between the principal partner, applicant, and customer.

The applicant sought the advance ruling on the issue of whether the software supplied by the applicant qualifies to be treated as computer software resulting in the supply of goods.

The other issue put forth was whether the applicant was entitled to the benefit of the notification dated November 14, 2017, which is applicable to the supplies made to the institutions given in notification.

The authority consisting of members Dr. M.P. Ravi Prasad and Mashood Ur Rehman Farooqui ruled that the supply of software which is not designed and developed specifically to any customer and sold without customization qualifies as “supply of goods” and “supply of computer software as goods”.

“The benefits of a notification dated November 14, 2017, are applicable to the supplies made if the same are made to recipients if they are covered under column (2) and if the condition as specified in Column (4) of the notification,” the authority observed.

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