TaxTMI 
TaxTMI 
Some of the online software are directly downloadable in computers. In such case how to declare value and pay duty to Customs ? For such outward remittances how to handle bank documentation under FEMA ?
ONLINE SOFTWARE IMPORT DUTY CALCULATION REG
20 Apr 2024 
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Import of Non-Physical Software: IGST applies and bank/AD documentation required; physical media may attract customs duty.
Electronically delivered software is treated as import of services and attracts IGST; AD banks require declaration, supplier invoice, licence evidence and certified communications, and a CA certificate may assist outward remittance. Physical documents or PUK/scratch cards sent by courier are classified by physical character and may attract customs duty when entered as cargo with a Bill of Entry. The applicability of IGST where no goods cross the customs frontier is contested; importers may pay IGST and claim input tax credit, and payments to nonresident suppliers raise income tax withholding considerations. (AI Summary)
Electronically delivered software is treated as import of services and attracts IGST; AD banks require declaration, supplier invoice, licence evidence and certified communications, and a CA certificate may assist outward remittance. Physical documents or PUK/scratch cards sent by courier are classified by physical character and may attract customs duty when entered as cargo with a Bill of Entry. The applicability of IGST where no goods cross the customs frontier is contested; importers may pay IGST and claim input tax credit, and payments to nonresident suppliers raise income tax withholding considerations. (AI Summary)