New Jersey Software Distribution and Maintenance Agreement
Description
How to fill out Software Distribution And Maintenance Agreement?
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FAQ
A software maintenance agreement, or SMA, is a legal contract that obligates the software vendor to provide technical support and updates for an existing software product for their customers. It may also extend the expiration date of certain features, such as new releases or upgrades.
To obtain a State contract, vendors compete for an award by responding to a Request for Proposal (RFP) when issued by the Division of Purchase and Property. RFPs are posted on the Division's website. RFPs are also posted on the NJSTART website.
Sales of are subject to sales tax in New Jersey. Sales of parts purchased for use in performing service under optional maintenance contracts are exempt from the sales tax in New Jersey.
Fees for the service of installing software for the customer are subject to Sales Tax. They are treated as charges for the installation of tangible personal property. N.J.S.A.
To obtain a State contract, vendors compete for an award by responding to a Request for Proposal (RFP) when issued by the Division of Purchase and Property. RFPs are posted on the Division's website. RFPs are also posted on the NJSTART website.
Generally, the maintaining, servicing, or repairing of real property is taxable unless the service results in an exempt capital improvement.
Sales of custom software - downloaded are exempt from the sales tax in New Jersey. In the state of New Jersey, it is considered to be exempt so long as it was separately stated, reasonable charge for the professionally done service of modifying canned software for a specific customer.
A computer software maintenance contract that only provides customer support services is treated as a sale of non-enumerated services and is not subject to sales tax.
AMC is a maintenance contract or an insurance policy for your technological advancement. It is a software update service for which your company has to pay annually, to the software provider.
Tangible personal property can include prewritten computer software delivered electronically. In addition, most services performed on tangible personal property and specified digital products are taxable unless they are specifically exempted by law.
