SOFTWARE IMPORT FROM SOUTH KOREA

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This discussion clarifies the process for importing software from South Korea electronically. It explains that such imports are generally treated as a supply of service, attracting 18% GST under RCM. While customs duty applies to physical media like CDs/DVDs, payments for downloaded software are typically not considered royalty, thus exempting them from TDS. The ruling from the Supreme Court of India is also referenced.

RAUSHAN MISHRA

RAUSHAN MISHRA (Querist)
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06 January 2022 Our company wants to buy software from South Korea the delivery to us in Electronic mode (Email/Link Download) please tell us what I Do as per Custom Rule & GST Rule.

Also Please give a document format.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2022 For the Software downloaded directly from the website or made available by way of any electronic medium shall constitute as supply of service as transfer or royalty payment received for transfer of Intellectual Property Rights relating to software and GST at the rate of 18% under SAC-99733 shall be applicable under RCM.
Customs duty applicable in case of import of CD/DVD.

RAUSHAN MISHRA

RAUSHAN MISHRA (Querist)
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07 January 2022 TDs applicable or not in this transaction

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2022 Payment to non-residents for imported software cannot be characterised as 'royalty' as it amounts to simplicitor purchase of goods, not taxable in India, hence no TDS required The Hon'ble Supreme Court of India (SC) has rendered its judgment

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