withholding tax on import of licence

[Harish uniyal]

  Is withhplding Tax is applicable in regards to the import of Software licence in India from Shangai .

[Surender Gupta]

The answer is Yes. Please ssee:

2012 (9) TMI 752 - ITAT, BANGALORE

M/s. Mercury Interactive Sales & Service India Pvt. Ltd., Versus The Deputy Director of Income Tax (International Taxation), 1(1), Bangalore.

and 

2012 (12) TMI 776 - ITAT, BANGALORE

M/s. Puma Sports India Private Ltd. Versus The Income Tax Office

AI Summary

Withholding tax on imported software licences requires the payer to deduct tax at source, supported by tribunal precedents. Withholding tax applies to payments for imported software licences supplied from abroad to entities in India, creating a payer obligation to deduct tax at source on such licence import payments, with tribunal precedents from Bangalore cited in support of this applicability.