Service tax on download of software from foreign website

I have doubt about service tax on Import of software in the form of download from website maintained out side of India. I have received invoice from supplier in UK containing development and maintenance charges separately. Whether i have to pay service tax on development or maintenance or both as per RCM? is there any notification? 

 

Replies (1)

Services from Non-taxable territory to taxable territory.

  • Taxable services provided by any person located in non taxable territory.
  • Services should be received by any person located in taxable territory. (i.e Constitution not required)
  • Liability of service receiver – 100%
  • Taxable territory – Whole of India except Jammu & Kashmir.
  • Service tax paid on reverse charge also eligible for cenvat credit on the strength of challan.
  • Service tax payable on reverse charge cannot be paid through cenvat credit a/c.
  • Point of Taxation – Date of Payment of invoice or 3 months from date of invoice - whichever is earlier.

as per my view, you are liable to pay service tax under reverse charge

 

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