Service tax in case of it software selling
This query is : Resolved
20 February 2013
Hi,
We are importers of an IT Security Software which comes through Online mode via Email directly to End User.
Normally we resell this product in indian market.
My question is if the product License is directly being supplied to end user in an online form through email where we are not providing any service.
The support is directly provided by OEM.
Will this attract service Tax?
We are importers of an IT Security Software which comes through Online mode via Email directly to End User.
Normally we resell this product in indian market.
My question is if the product License is directly being supplied to end user in an online form through email where we are not providing any service.
The support is directly provided by OEM.
Will this attract service Tax?
CA Parul Saxena
(Expert)
20 February 2013
If customer is purchasing the product from you and invoice is raised by you to customer then it is a case of sale and purchase no service tax is being levied as it is the case where product is merely being directly given to customer on your behalf.
But if you are acting as a mediator between the foreign co. and customer then in this case service tax is being attracted.
But if you are acting as a mediator between the foreign co. and customer then in this case service tax is being attracted.
20 February 2013
Thanks for the Reply Parul,
What exactly do you mean by Mediator,
Customer is raising the PO to US and we are raising the PO to the OEM, we are charging the customer Sales tax, but no taxes are applicable in case of Import of software.
Also, Software License is delivered to the customer email box directly.
What exactly do you mean by Mediator,
Customer is raising the PO to US and we are raising the PO to the OEM, we are charging the customer Sales tax, but no taxes are applicable in case of Import of software.
Also, Software License is delivered to the customer email box directly.
CA Parul Saxena
(Expert)
20 February 2013
Ok so in this the case the seller-buyer relationship exist between your organisation and customer so service tax is not leviable.
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