Import of software

This query is : Open

swasti (Querist)
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27 July 2012 If an Indian Company is importing computer software from abroad, it it necessary to withhold tax on it? Please give reference for the same. Is there any amendment regarding the same in the Budget 2012?

CA Rahul Jain

CA Rahul Jain (Expert)
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28 July 2012 Yes, it is necessary to withhold tax on such transactions.

However, (in Budget 2012), any subsequent transfer of software (transferor being resident), no tax shall be deducted subject to certain guidelines.

For more clarity you may refer the notification no 21/2012 of Income Tax.

swasti

swasti (Querist)
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30 July 2012 Thanks Sir. I have gone through Notification No. 21/2012. It speaks about Purchasing Software from Residents. Could you please clarify more for withholding tax on import of software. It would be very nice of you if you could tell where it is written for applicability of withholding tax on import of software. Thanks & Regards

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