100% eou (stpi) allowed to do trade

As far as I know there is nothing illegal. But the trading goods cannot be brought to the premises registered as EOU.

Thank you Sir for the clarification.  This is a packaged software product which we are planning to import from USA and trying to sell in domestic market.  We have DTA sales permission from STPI to udertake  DTA sales up to 50% of the export turn over and hence there is no problem for us to do domestic sales. 

But  buying software  from one contry and selling it in domestic market is " mear trade". I wonder if this is premissible to a 100% EOU. If it is permissible what tax shold we charged in the Invoice? (Excise duty or Service Tax or VAT) or can we sell the software without collecting any duty as we will be paying fully customs duty at the time of import? Could you please clarify this also?

Thanks

Sreejith

Packaged softwares (TSH 8523) are under central excise and CVD ( in lieu of excise duty) would be charged at the time of imports, hence no futher excise duty or service tax applicable on such items on sale "as is where is" basis, for purely trading purpose. 

however any amount charged additionally as AMC, installation, after sales support etc would invite service tax.

As far as I know the upper ilmit of 50% DTA sales applies to softwares developed by you. Trading softwares may not come undet this cap. Regarding sale of the imported software, I feel that the same attracts both service tax and VAT.