TaxTMI 
TaxTMI 
Whether Excise Duty OR Service Tax applicable on Software
X X X X Extracts X X X X
X X X X Extracts X X X X
....hether Excise Duty OR Service Tax applicable on Software<br> Query (Issue) Started By: - Pranav J Dated:- 15-2-2014 Last Reply Date:- 16-2-2014 Central Excise<br>Got 1 Reply<br>Central Excise<br>We manufacture Home Automation Products. Depending on sophistication we offer two solutions. CASE - I : Broadly this automation solution consists of Hardware and App (working on smart devices). This solut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion is suitable for single room. We will be charging Excise Duty on the Hardware Products, however, Apps are made available FREE OF COST onApple, Android and Windows App stores. Since the Apps are given to the user Free of Cost, there is no financial transaction taking place. Hence we will not be making invoice either.. Query- not making invoice and not charging excise duty or service tax is legal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly correct from Excise and Service Tax point of view ? CASE II : Broadly this automation solution consists of Hardware, App (working on smart devices), software and access license. This solution is suitable for entire house. When user needs inter-connectivity of controls (say controlling lights of living room from bedroom) Automation Server is required. User can use his PC as a server. Our softwa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re will run on this server.We will be selling the software use license for the Server and also access license to restrict the number of users. Query : i. Is our software Packaged, Canned or Custom Made ? ii. What is the Excise Classification for the same ? iii. What is the Classification for the Access License ? iv. Whether we have to charge Excise Duty OR Service Tax, if both Software and License....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Keys are made available online. v. Whether we have to charge Excise Duty OR Service Tax, if both Software and License Keys are made available through Distributor in Physical Form. Reply By Pradeep Khatri: The Reply: Transaction VAT/ CST Serv Tax Customs Excise e-downloads of software from o/s India NA Yes NA NA e-downloads of customised software from o/s India NA Yes NA NA Distrib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ution of software in electronic form Yes Yes NA If replicating, yes Customization of platform software (eg ERP customization, etc) Yes Yes NA NA Software loaded into hardware and offered as solution Yes No Yes If replicating, yes Payment of "royalties" on software distributions No Yes No No Software as a service No Yes No No Cloud Computing ??? ??? ??? ???<br> Discussi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on Forum - Knowledge Sharing ....