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

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.