Import of software - custom duty and service tax

[Subhash Singh]

what is the custom duty, service tax and other duties on importing software in India

[Dinesh Gupta]

Customs duty exempted on import of soft wares in India. Excise duty is exempted subject to payment of service tax on software. It seems that Cent. Govt. itself is undecided on this issue that this type of arrangement. Therefore, at the time import, you need to pay service tax as receipient of service / reverse charge method. However, you also be required to pay VAT along with service tax for resale of software in India.

[rishi mohan]

In case of importing of softwares in India, custom duty is fully exempted. But excise duty is exempted with subject to payment of sevice tax on importing of software. Service tax need to be paid on importing of software. This liability is to be borne by the receipient of such services in India.On the other hand a tax liability known as sales tax/VAT required to be paid along with service tax for resale of software in India. Sales tax/ Vat and service tax both will be applicable in case of importing and then resaling of software in India.

AI Summary

Software Imports: Customs and Excise Duty Exempt, Service Tax Paid via Reverse Charge; VAT Applies on Resale A discussion forum addressed the issue of customs duty and service tax on importing software into India. Two participants clarified that while customs duty is exempted for software imports, excise duty is also exempted but subject to the payment of service tax. This service tax must be paid by the recipient through the reverse charge mechanism. Additionally, for the resale of software in India, both VAT and service tax are applicable. The central government appears undecided on some aspects of this arrangement, necessitating these tax payments during import and resale.