Customs Duty on Software

This query is : Open

CA.CS.V.Viswanathan

CA.CS.V.Viswanathan (Querist)
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28 August 2009
Is customs Duty Applicable to Software??
if yes
Our company imports Software licenses from Microsoft all transaction are through online only. they receive the License online and they transfer it to Reseller for a commission.
weather Customs duty is applicalble for such transactions??
The Company Chages both Sales tax (VAT) and also Service tax,(not WCT)
VAt at State rates
Service tax @ 10%+3%

Please Clarify weather Customs duty is applicable..

CA Vanesh Nadar

CA Vanesh Nadar (Expert)
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28 August 2009 IT is still not clarified by the CBDT as to consider it as an Goods or Services. Thus, most charges both VAT as well as ST and thus there is no clarification is possible. It is chargeable to VAT as it is CD format and should be considered as Goods and should be an Service as it is an Self Designed Product.

I hope you will get the information and the same would be resolved ASAP.