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SERVICE TAX ON SOFTWARE DOWNLOADED FROM INTERNET AND SOLD

This query is : Resolved 

04 May 2009 1. DOES ANY SOFTWARE DOWNLOADED FROM THE INTERNET ALONG WITH ITS KEY AND SUBSEQUENTLY SOLD ATTRACT SERVICE TAX? THESE TRANSACTIONS ARE DONE CONTINOUSLY AS BUSINESS.

2. WHETHER ANY TDS TO BE DEDUCTED ON PAYMENTS MADE FOR PURCHASE OF SOFTWARE THROUGH THE NET AND SOLD SUBSEQUENTLY?

FOR BOTH THE ABOVE QUERIES VAT/CST WILL BE PAID ON THE SALE MADE IN INDIA.

05 May 2009 Whatever payment is made for keys/permission etc. is import of service and liable of service tax under Section 66A.
No TDS is required to be made as it is a transaction in goods.
Yes.
Further, if you are recording the softwere after download on some media, the process amount to manufacture and Central Excise duty is payable.

05 May 2009 VAT/CST is applicable on sale of goods which includes software.


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