Sreejith S (Manager-Finance) (95 Points)
29 May 2011
Hi All
Can anybody clarify the following?
1. What is the prevailing excise duty for software products?
2. What is the exemption limit of excise duty?
3. Can a 100% EOU registered under STPI scheme avail this exemption?
4. Since the 10B exemption is over, is it absolutely necessary to get STPI permission to do DTA sales?
Thank you
Sreejith
1. its canned software or customise software depends on that , if its sold out of self then the basic duty is applicable and if its customise software then no excise duty is suppose to be payable
2.150 lks
3. yes 100% EOU CAN avail the benefit but again then need to follow the procedure as all the material supplied from eou to domestic market are chargable to duty along with custom procedure as if they are imported from outside india
4. yes its must
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 30 May 2011
ATTENTION MR. SREEJIT S. JI,
In case of packaged or canned software falling under tariff item 8523 80 20, excise duty is payable on MRP valuation basis w.e.f. 21-12-2010. The abatement available is 15% of MRP, i.e. excise duty (and corresponding CVD in case of imported packaged or canned software) is payable on ‘value’ which will be 85% of MRP printed on the packaged or canned software.
‘Packaged software or canned software’ means a software developed to meet the needs of variety of users, and which is intended for sale or capable of being sold, off the shelf [Explanation to Sr. No. 27 to Notification No. 6/2006-CE dated 1-3-2006]
If appropriate excise duty (in case of software manufactured in India) or customs duty in case of imported software) is paid on basis of MRP valuation by the manufacturer, duplicator or the person holding the copyright to such software, service tax will not be payable on such packaged or canned software – Notification No. 53/2010-ST dated 21-12-2010 [During the period 27-2-2010 to 21-12-2010, distinction was made between ‘single use packaged or canned software’ and multi-use packaged software. That distinction has been removed w.e.f. 21-12-2010].
The service provider should make a declaration on the invoice relating to such service that no amount in excess of the retail price declared on the said goods has been recovered from the customer [why such unnecessary complication which increases litigation?]
‘Appropriate duty of excise or customs’ means duty payable after considering exemption notification issued under section 5A(1) of Central Excise Act or section 25(1) of Customs Act.
2. & 3.at present 100% EOU, STPI,BTP/EHTP UNITS CAN AVAIL THE BENEFIT aso Aagree with mr. singhania ji.
4. YES OVER, NOT NOTIFICATION ISSUED BY DEPARTMENT OF COMMERCE SO FAR IN THIS REGARDS. & REFER TO EPCES CIRCULAR NO.19 DTD. 15.09.2006 100% EOU/BTP/STPI/EHTP ARE ENTITLED FOR EXEMTION FROM THE INCEOME TAX UNDER SECTION 10B OF INCEOME TAX ACT. & MANDATORY.
Sreejith S
(Manager-Finance)
(95 Points)
Replied 30 May 2011
Dear Raam and Dear Ramesh,
Thank you verymuch for your prompt and timely response. Could you also please let me know the excise duty for the canned software (software manufactured in India)
Thank You
Sreejith
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 31 May 2011
DEAR SIR WILL YOU PROVIDE RITC HS CODE NUMBER OF THE SAID IMPORTED ITEM FOR PROMPT REPLY.
THANKS,
Sreejith S
(Manager-Finance)
(95 Points)
Replied 03 June 2011
Thank for the information.
Sorry for the late reply as I could not check the mails for two days
Sreejith S
(Manager-Finance)
(95 Points)
Replied 06 June 2011
Hi Friends
Got confused again. As per https://www.eouindia.gov.in/dta1.htm " the duty of excise leviable thereon under section 3 of the said Central Excise Act as is in excess of the amount equivalent to fifty per cent. Of the aggregate of the duties of customs, which would be leviable under the Customs Act, 1962 (52 of 1962) or under any other law for the time being in force"
So which one we should follow- 10% excise duty or 50% of the aggregate of the duties of customs? Pls advice
Thanks
Sreejith
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 06 June 2011
ACTUALLY THIS IS OLD FOR UPDATION READ LINK:-
https://www.centralexcisemadurai.tn.nic.in/cex_faq.html
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 06 June 2011
DEAR , S. JI, ANOTHER LINK IS :-
https://www.eximguru.com/exim/eou/ch_3_eou_incentives.aspx
Sreejith S
(Manager-Finance)
(95 Points)
Replied 06 June 2011
Dear Ramesh,
Thank you very much. I could understand that - 50% of physical exports can be sold in domestic market on payment of concessional duty by a 100% EOU
Could you please clarify what does it mean " Concessional duty" and how do we calculate this?
Thank You
Sreejith
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 07 June 2011
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 07 June 2011
https://www.eximguru.com/notifications/dta-sale-at-concessional-duty-17036.aspx
Sreejith S
(Manager-Finance)
(95 Points)
Replied 07 June 2011
Thank You Dear Ramesh. So what I understood is STPI units are not eligible for concessional rate and they are liable to pay full duty for the DTA Sales. Pls correct me if I am worng.
Hope the same rule is applicable for DTA Services also
Sreejith
CAclubindia
