Tax on software development
This query is : Resolved
16 February 2016
How sale of software developed for specific foreign client is taxable in excuse ,custom,income tax,vat etc
17 February 2016
It depends on how sell your software to the customer. If you sell as a product, it attracts excise and VAT. If you sell as a service it attracts service tax. In case of export of service, service tax not attracts.
17 February 2016
Refer the below cases:
TCS vs. State of Andhra Pradesh [2005]
Infosys Technology Ltd Vs. CCT [ Madras High Court ]
Transforming blank CD into software loaded disc is ‘manufacture’. CIT v. Oracle Software India Ltd 2010 ELT 161 [SC].
Sasken Communication Technology Ltd v. Jt.CCT [ 2011] 33 STT 507
TCS vs. State of Andhra Pradesh [2005]
Infosys Technology Ltd Vs. CCT [ Madras High Court ]
Transforming blank CD into software loaded disc is ‘manufacture’. CIT v. Oracle Software India Ltd 2010 ELT 161 [SC].
Sasken Communication Technology Ltd v. Jt.CCT [ 2011] 33 STT 507
17 February 2016
Software is excisable goods
Information technology software ( branded as well as tailor made ) is excisable goods under the heading 8523 80 20 and tariff rate of duty is 12%. However, all software except canned software [i.e. the software which can be sold off the shelf ] , is exempt under Sl. no. 27 of Notification no. 6/2006- CE dated 1.3.2006.
Custom duty on Software
ITS fall under the heading 8523 80 20 of custom tariff and import of software [ branded or tailor made ] is not subject to custom duty. However , the excise duty is payable on branded ( packaged or canned ) software. Hence, CVD will be payable if package or canned software is imported.
Information technology software ( branded as well as tailor made ) is excisable goods under the heading 8523 80 20 and tariff rate of duty is 12%. However, all software except canned software [i.e. the software which can be sold off the shelf ] , is exempt under Sl. no. 27 of Notification no. 6/2006- CE dated 1.3.2006.
Custom duty on Software
ITS fall under the heading 8523 80 20 of custom tariff and import of software [ branded or tailor made ] is not subject to custom duty. However , the excise duty is payable on branded ( packaged or canned ) software. Hence, CVD will be payable if package or canned software is imported.
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