Import regulations on software import through Internet

KMehta (Director) (35 Points)

04 December 2009  

HI,

We are a Software developing Company based in Mumbai. I have a query regarding import of Software through Internet.

we have recently obtained dealership of US based software company to sell their software to our Indian customers.

 

The US based co. will give me the access code of the software through Email. And we will further sell that code to our customers in India.

 

The customer will have to download the software from US based companies website through internet by using code nos.Or We may mail the Software to the Client which can be installed only on basis of Customer Code

I have understood from various articles posted on CA Club India that

  1. Software Import through Internet is permitted
  2. No Custom Duty / CVD / is applicable on Software Import
  3. S. TAx may be applicable on Case to case basis. VAT Is compulsory

Please coorect me in case my understanding is wrong anywhere. My query is

  1. Does my company need to obtain a Import Code or Import License for importing the software through internet?
  2. Will the Invoice raised by Foreign Company enough for the bank to release payments? My bank is asking for proof to show that no Duty is applicable on the import. How do I convince them?
  3. Do i need to regularly intimate the Customs dept on the import made by us though no duty is applicable?

Would be very grateful If some one can give clarifications to my query above as soon as possible as I have a client who has requested the software on an urgent basis.