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In the ruling, the DOT addressed nine common situations in which the sales tax treatment of electronically provided prewritten software may be called into question:
Software electronically downloaded onto equipment purchased by the customer.
SLAs are a means of incorporating Performance-based Service Contracting (PBSC) into software acquisition.
Software AG's electronic business products have boosted revenue growth by more than 100% year on year, increasing from almost no revenue in 1998 to over 30% share of license revenue in the most recent quarter.
The importance of understanding database software technology becomes readily apparent when one realizes that computer-based records tracking software, electronic mail systems, corporate financial applications, electronic document management systems (EDMS), and many other organizational information resources rely on database software.
At the start of software development projects--which often cost millions of dollars--management normally has already determined whether it should market the resulting applications.
This "productivity paradox" points to a fundamental misalignment between the software and business strategies of many firms.
There are dozens of commercial software packages available, ranging from PC-run two-dimensional (2-D) programs to sophisticated three-dimensional (3-D) packages that require the power and performance of a supercomputer.
If software is leased, lease payments are deducted currently.
Despite the fact that accounting software designed for for-profit businesses is usually a poor fit for NPOs, many--especially the smaller ones--are compelled to use them.
A company with self-developed software costs may choose among three alternative tax treatments for these costs.
Software highlights: Automatic overflows; pop-up calculator; automatic attachments; depreciation schedules; client management; mailing labels; amortization schedules; direct or third-party electronic filing attachments (integrated with Nelco Directronic Filling).
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