Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: TDS :: list of goods taxed at 4% :: empanelment :: form 3cd :: due date for vat payment :: VAT RATES :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit
« Service Tax »
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?
 E-way relief, for now, to e-commerce, courier firms sending small orders
 Where to invest for saving more on taxes
 A simpler GST can become a registry of all invoices, says iSPIRT’s Sharad Sharma
  Income Tax department may defend CPC in returns fraud case
 One GST rate not possible, next reform after compliance improves,

Duty reduction service tax likely on packaged software
March, 30th 2009

The government plans to remove either the service tax or the countervailing duty on packaged software such as Microsoft Office to offer some relief to over 4,000 software retailers whose business has been rendered unviable by multiple taxes in a slowing economy.

The Central Board of Excise and Customs (CBEC), the apex body for indirect taxes, has proposed to end double taxation on software sales and is likely to come up with a clarification soon, said a senior government official. A final decision would be taken shortly, he said requesting anonymity.

The domestic market for software market in the country is estimated at around Rs 10,000 crore, but the margins are in the range of 4-5%.

When a packaged software is downloaded, it attracts service tax at the rate of 10%, as the downloading is treated as a service. It again faces countervailing duty of 8%, when a hard copy is taken or the licence is taken. The countervailing duty is levied on imported goods to provide a level-playing field to Indian companies that pay an excise duty.

The government is examining both the options exemption from service tax and from countervailing duty. This comes after an appeal from the software industry to CBEC, following a 40% decline in sales.

The problem arose after the Union Budget 2008-09 brought customised software under the service tax net. But, the finance act did not mention the word customised, giving room to tax officials to interpret the law.

The definition prescribed for software makes acquisition of right to use packaged software also taxable, thereby leading to double taxation.

This is because sale of licences, which are acquisition of a right to use the software, would be treated as a sale of good and thereby attract CVD and Value Added Tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions