Please Help: Service TAX

Posted Date : 07-Apr-2012 , 05:15:12 pm | Posted By Vandana Kaushik

Please help on following query:

One of my client to start a business of software import from microsoft singapore in the form of online access with password key. After that software to be sold in india to end user.

Software selling to local end user will attract service tax as well as VAT/Sales Tax.

It has got registered itself in service tax as "information technology and software services".

Now my queries are as:

1. Will import of software attract service tax under reverse charge method i.e. import of services??

2. If yes, whether it is calculated on invoice value or consideration will be considered as inclusive of service tax?

3. Whether assessee can claim input of service tax paid under reverse charge method?

4. What will be point of taxation in respect of import of services?

5. Whether it needs to make any addition of services in registration or will be falling under same heading?

Category : Service Tax | Answers : 0 | Comments : 3 | Hits : 418

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SANTOSH KUMAR AGARWAL

07-Apr-2012 , 09:58:41 pm

look when you import a softwre from the out side of india you have to test wheather you brought a softwre with the licence to use or it was compelet sales. if the later on case then there will be no service tax but custom duty wiil be levey. Here you are sure that you pay services tax as reverse charges means the liability of payment of sevice tax on service reciver and you pay that service tax through GAR - 7 challan. So you can book CCR for the amountyou pay to govt. But here is the question wheather you sales that softwre to buyer is an sell or service contact. You should goo through the case of Infotech Software Dealers Association v UOI 2010(20)STR 28(MAD)