Import of Software license

This query is : Resolved

CA.CS.V.Viswanathan

CA.CS.V.Viswanathan (Querist)
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28 August 2009 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

Vikram

Vikram (Expert)
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28 August 2009 Yes they should charge custom as well because it is an Import may not crossed physical custom frontier but still it will be counted as import.