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Service tax on download of software from foreign website

CA Mayur Todmal (Practicing CA) (7756 Points)

14 January 2016

I have doubt about service tax on Import of software in the form of download from website maintained out side of India. I have received invoice from supplier in UK containing development and maintenance charges separately. Whether i have to pay service tax on development or maintenance or both as per RCM? is there any notification?

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Arpit verma (Indirect tax) (1372 Points)
Replied 15 January 2016

Services from Non-taxable territory to taxable territory.

Taxable services provided by any person located in non taxable territory.
Services should be received by any person located in taxable territory. (i.e Constitution not required)
Liability of service receiver – 100%
Taxable territory – Whole of India except Jammu & Kashmir.
Service tax paid on reverse charge also eligible for cenvat credit on the strength of challan.
Service tax payable on reverse charge cannot be paid through cenvat credit a/c.
Point of Taxation – Date of Payment of invoice or 3 months from date of invoice - whichever is earlier.

as per my view, you are liable to pay service tax under reverse charge