Exemption to Media containing recorded Information Technology Software:

[Guest]

Dear Sir,

Please advise on Exemption to Media containing recorded Information Technology Software in simple words from both point of view Excise and Service Tax.

AI Summary

Clarification on Excise Duty for IT Software: Classified Under Chapter 8523 80 20, 12.50% Duty with 15% MRP Abatement. A query was raised regarding the exemption of media containing recorded Information Technology Software from excise and service tax. The response clarified that such software is classified under Chapter/Sub-Heading No. 8523 80 20 of the Central Excise Tariff Act, attracting a 12.50% excise duty. There is a 15% abatement from the MRP as per specific notifications. If the MRP is not required on the package, an exemption from excise duty is available on the portion where service tax has been paid, subject to necessary declarations and service tax registration details. Relevant notifications were also referenced for further guidance.