Down loading of soft ware.

[Joginder Pal]

RBI has permitted sending foreign exchange on the purchase of software from the foreign vendor through internet download. I am interested to download and further use this download for further selling, distribution etc.as my business. My questions are: -

1) Whether such download of software is chargeable to customs duty? If so the rate of duty?

2) Whether one is required to file the bill of entry, if so the provision thereof?

Thanks

Jogi

[Surender Gupta]

Downloading of software is not liable to Customs duty. Instead it would attract service tax.

AI Summary

Import of software by download: not subject to customs duty but liable to service tax under domestic law.
Downloading software from a foreign vendor is not an assessable import for customs duty and therefore does not attract customs levy or require filing a bill of entry for customs assessment; the transaction remains amenable to domestic indirect taxation and attracts service tax, with Reserve Bank permission permitting remittance for purchase but not altering customs treatment.