Importing Software for reselling

[Asked by Guest]

We are planning to import software from USA & reselling it in India. We are not giving any services or support for that software. Just buying from USA and reselling in Indian market, the parent company itself gives direct support. Do we need to add services tax, while billing to our customers?

[PARTHA SARATHI CHATTERJEE]

I presume you are dealing in packaged or canned software and for availing the exemption of CVD registration with Service Tax Authorities is a condition (Not. 17/2010-CE dt 27.02.10).

Service Tax authorities may ask for Service Tax as you are acting as authorized agent or dealer of Service Provider.

Hello Mr. PARTHA,

Thanks for your valuable inputs, Since we are not dealing with any packaged or canned software. We just receive the digital licenses and forward them to our clients. In such case do we need to add services tax, while billing to our customers?

Shashikumar Naikar

 

 

can anyone assist me with my query?

AI Summary

Service tax exposure for imported software resold depends on reseller's role and fulfillment of exemption conditions.
Whether sale of imported software licences conveyed digitally and resold in India without attendant support attracts service tax depends on product classification, the reseller's contractual role, and satisfaction of exemption conditions tied to packaged software and related registration requirements; authorities may treat the reseller as an agent or authorised dealer and seek service tax despite absence of direct support.