Download Software and resell

This query is : Resolved

Guest

Guest (Querist)

08 April 2009 I want to re sale a software in India which is to be imported from outside India.

This software is offered to be downloaded from the Internet.

what are taxes involved on Internet downloadable software?

Do I need to Deduct TDS on the amount to be paid to the supplier abroad?

What taxes do I need to charge to my customers in India?

Can I leagally Import Services and resell the same, as in case of software?

DO I need to send any information to Customs Department regarding this download?

What document does the my bank require to remit this payment to the supplier abroad?

Regards

Amit

Mahesh

Mahesh (Expert)
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08 April 2009 I like your qest. as it covers the issues of finance world.

Anyways, software downloaded through internet is identical to acquiring rights to use Information technology software electronically for commercial exploitation or for use. Which is a service defined under Finance Act, 1994, liable to service tax. Due to deeming fiction, u r the person liable to pay service tax.

Guest

Guest (Querist)

08 April 2009 Thanks Mahesh for your reply,

Can you put some light on the TDS issue and can I import a service and re sell this as again as service. I hope I can claim the CEVAT.
One more thing, even though I don't have a service tax registration( as I have not crossed the limit defined to register), how do I then pay service tax if importing the software?

Regards

Amit

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SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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10 April 2009 Services as described by you is taxable under " Information Technology Software Service" w.e.f May 2008.Since you are importing the service in India you would be liable for the payment of ST. You have to take registration before making the payment. You can take credit on the service tax paid.