Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
15 April 2009Dear all,
I am dealer of UK based software company and selling their software to our Indian customers.
UK based co. gives me the access code of the software through Email. And I further sell that code to my customers in India.
The customer download the software from UK based companies website through internet by using code nos.
Is there any Customs Duty / Service TAx/ Sales Tax implications in such transaction. ?
Regards .
Varun Pandya
(Practice)
(69 Points)
Replied 17 April 2009
| Originally posted by :Jeevesh | ||
| " | Dear all, I am dealer of UK based software company and selling their software to our Indian customers. UK based co. gives me the access code of the software through Email. And I further sell that code to my customers in India. The customer download the software from UK based companies website through internet by using code nos. Is there any Customs Duty / Service TAx/ Sales Tax implications in such transaction. ? Regards . |
" |
Software is covered under definition of goods, it would be very likely to be covered under VAT. For Service Tax and Customs implications, an indepth study of statute and your transaction would be required.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 20 April 2009
There is no cusotms duty liability on this trasnaction as goods do not enter thru the borders. Disclosing the trasnaction to the cusotms on a regular basis is also recommended clearly stating the electronic download and email of code which is sold.
None under Central excise
None under Service tax as the same is purely a sale of software. However the ST dept presently is disputing the same and relief would have to come from the court before which the matter is pending.
Local VAT would certainly be applicable
Hope the information is useful
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