Excise duty exempt for software exports

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G Hetal

CA Job

23 Points Posted on 22 February 2013

We are a small software product company which exports software via electonic link. We file SOFTEX form for all our exports.

Are we exempt from excise duty or is excise duty applicable to software exports also?

Note: We were a STPI unit till last year, but last year we took exit from scheme.

Thanks

Hetal

Replies (3)

CA Hardik Bunha

self

1856 Points Posted on 22 February 2013

only 100% export oriented unit and company situated in SEZ is exempt from excise duty

G Hetal

CA Job

23 Points Posted on 23 February 2013

I know excise exemption is available to STPI units for input/import/indigenous procurement. But my question is, is excise duty payable on sale (export) of our software? Thanks.

Prabhat Kumar

Advocate & Consultant

1820 Points Posted on 23 February 2013

Every excisable goods attracts duty unless the same is charged nill rate of duty or is exempted under notification of the department.In Excise Tarrif Software is mentioned in Chapter 84 and 85,some of the software mentioned in these chapter attract nill rate of duty like product falling under chapter heading 8471 and8523.If you fall under exemted categories there is no duty otherwise there is duty liability.Regarding Export there will be no liability of duty but you have to follow the precribed procedure i.e pay the duty and claim the refund or clear the goods without payment of duty under bond.