Duty on software import

DEAR,  LET'S KNOW ARE U REGISTERED WITH EXCISE AND ST?  WILL IT BE ONLINE OR THROUGH PHYSICAL MODE I.E CD OR USP?/WILL ADVISE POST YOUR REPLY ,AS IT IS LITTLE COMPLICATED

Applied for both just few days back. Transaction will be completely online through emails and downloads. There will not be any CD. Looking forward to your reply.

1. FIRST OF ALL , YOU ARE ADVISED TO TAKE AN IEC( IMPORT EXPORT CODE), THE PROCESS IS SIMPLE YOU CAN APPLY ONE LINE  IN DGFT SITE,  POST SAME,SUBMIT ORGINAL PAPERS AND  GET WITHIN 15 DAYS.

2.CUSTOMS DUTIES ARE FULLY EXEMPTED ON IMPORT OF SOFTWARE  & RIGHT TO USE LICENCE THROUGH E MODE BUT YOU NEED TO PAY SERVICE TAX @ 12.36% ON LICENCE VALUE.   IN CASE OF THE TWO IS IMPORTED IN PHYSICAL MODE, THEN CUSTOMS DUTY ARE APPLICABLE

3.RBI RULE SAYS AN INTIMATION NEED TO BE GIVEN TO CUSTOMS FOR ALL SUCH TRANSACTIONS ON E MODE AND PAYMENT REMITTED THROUGH NON TRADE PAYMENTS

3. TDS ALSO TO BE DEDUCTED ON PAYMENT REMITTENCE TO FOREIGN SUPPLIER.