Tax Management India. Com TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals Articles SMS News Highlights



User Login
Stay sign in     

Forget password        New User/ Regiser


Manufacture - replicating certain Microsoft software on CDs/DVDs - Benefit of serial No. 27 of Notification No. 6/2006-CE - Held that:- Applicant does not have any case on merits as the work of replicating and that also in large quantity, will not be relating to a customized software. It is not under dispute that such software has been developed by the Microsoft and are used in computer system by various original equipment manufacturers or other customers. In such a situation, the software cannot be called customized software so as to extend the benefit of Notification 6/2006-CE dated 01/03/2006. In view of the said position, prima facie, we are of the view that the applicant will be required to pay duty on the said goods.

However, the question comes what would be the value for computation of duty. It appears that the Revenue has added US $ 7/- per disc for computing the duty. The figure of US $7/- has been taken as that is the royalty that is required to be paid by the Authorised Replicators/OEM to the Microsoft for the main software. Similarly, recovery disc is provided to OEM manufacturer so that in case of any problem in the original software, recovery disc is used. Similar is the position in respect of other type of discs other than works. In case of Works, it appears that the same royalty is indirectly paid to the Mircrosoft. - stay granted partly.





← Previous Next →

Recent / Latest:
Discussion Forum
what is new what is new

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version