import of Software with license in CD

[Pradeep Jain]

We have imported one Engine Calibration System from one supplier situated in Germany

From the same supplier we have to purchase licensed software to make above referred Calibration Sys. workable

The software will be supplied in CD

Is the import transaction of License Software attracts any Tax liability such as Customs Duty, Service Tax etc.

Please provide legal opinion

Regards,

 

AI Summary

Import of licensed software may attract customs duties on the physical media and service tax as transfer of right to use.
For software supplied on CD, customs duties (including CVD and SAD) can apply to the cost of the physical media on import, while indirect taxes like service tax and VAT/CST may attach to the transfer of rights in the software depending on classification: packaged software with MRP attracts excise and VAT/CST, packaged without MRP may attract excise/customs on the media and service tax for transfer of right to use, and tailor made software or paper licenses typically draw service tax and VAT/CST; downloads have service tax but no customs/excise on media.