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

Service tax on imported software is payable by the recipient under reverse charge; customs duty exempt and VAT on resale applies. Customs duty is exempt on importation of software. Excise duty is treated as exempt subject to payment of service tax on imported software, with the service tax liability falling on the recipient in India under the reverse charge mechanism. For resale of imported software in India, sales tax/VAT is payable in addition to service tax.