import the export of software licenses

[MANISHA KHANNA]

Hello Sir,

We have one client in base Switzerland and he want to buy software licenses from india, my question is that if i import the software licenses from Singpore to india, and then i export the same to Switzerland, what documents we required and what taxes and duty will be applicable on both import and export transection, also i want to know can we do software import and the same can export.

[YAGAY andSUN]

You need following precautions while dealing in software/software licenses.

1. It should not fall under SCOMET List or as a Restricted Goods category. If it falls under such categories then you need to seek specific Import and Export authorization from DGFT & respective Ministries to import and export.

2. Triparty Agreement should be executed, if your client provide consent in this regard. If not, then two agreements will be executed namely  one for import , other one for export.

3. You need to declare the correct value to customs department if it is imported as Goods and if in soft form via e-mail or datacom channels even then you need to disclose it to Customs and to your AD.

4. Where imports are made in non-physical form, i.e., software or data through internet / datacom channels and drawings and designs through e-mail / fax, a certificate from a Chartered Accountant that the software / data / drawing/ design has been received by the importer, may be obtained.

5. On imports, if imported as goods you need to pay customs duties, cess and IGST.  And if you export it as such then you may get Duty Drawback of Customs Duties under section 74 of the Customs Act.

6. On exports you need to pay any taxes or duties, however please get the HSN Code checked from the Customs Broker, whether any such liability or restriction to export exist or not.

You may export software/license under LUT or with payment of IGST and accordingly can get refund either on accumulated ITC or on IGST Paid. 

Also take care of FORM SOFTEX, if it is applicable on your transactions.

[Shilpi Jain]

Is the software imported and exported physically?

AI Summary

Software License Cross-Border Transaction: Navigating Complex Import-Export Compliance, Customs Regulations, and Documentation Requirements A Swiss client seeks to import software licenses from Singapore to India and then export to Switzerland. Key considerations include verifying SCOMET list restrictions, executing appropriate agreements, declaring correct customs value, obtaining CA certificates for non-physical imports, paying applicable customs duties and taxes, and complying with SOFTEX form requirements. Duty drawback and tax refund options may be available depending on import-export transaction structure.