EXEMPTION ON SERVICE TAX ON PACKAGED COMPUTER SOFTWARE

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II,

SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

Department of Revenue

New Delhi, the 27

February, 2010

Notification No. 02/2010 - Service Tax

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the

Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is

necessary in the public interest so to do, hereby exempts the taxable service as referred to

under item (v) of clause (zzzze) of sub-section 105 of section 65 of the said Finance Act, for

packaged or canned software, intended for single use and packed accordingly, from the whole

of service tax, subject to the following conditions, namely:-

(i) the document providing the right to use such software, by whatever name

called, if any, is packed along with the software;

(ii) the manufacturer, duplicator, or the person holding the copyright to software

has paid the appropriate duties of excise on the entire amount received from the

buyer; and

(iii) the benefit under notification No. 17/2010– Central Excise, dated the 27

February ,2010 is not availed of by the manufacturer, duplicator or the person holding

the copyright to software.

[F. No. 334/1/2010-TRU]

(Prashant Kumar)

Under Secretary to the Government of India