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ONLINE SOFTWARE IMPORT DUTY CALCULATION REG, Customs - Exim - SEZ |
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ONLINE SOFTWARE IMPORT DUTY CALCULATION REG |
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Some of the online software are directly downloadable in computers. In such case how to declare value and pay duty to Customs ? For such outward remittances how to handle bank documentation under FEMA ? Posts / Replies Showing Replies 1 to 6 of 6 Records Page: 1
No Customs Duty liability arises on the import of software in non-physical form i.e. import of software over the internet, as no physical goods are imported into India. IGST at 18% shall be payable on the import of such software. A Chartered Accountant certificate confirming the import of software in non-physical form should be submitted to the AD banker for processing the outward remittance.
As per the guidelines set by the Reserve Bank of India (RBI), authorized dealers (AD Banks) play a crucial role in enabling remittances for importing software through the Internet. To facilitate this process, importers must provide a declaration stating that they have received the software from the overseas supplier, an invoice containing details of the software supplied, a license authorizing the importer to use the software and copies of emails certified by the remitter's company. Furthermore, importers must keep the customs authorities informed of their imports.
Dear Mr.Pradeep Reddy / Mr. Raghunandhaanan Many thanks for your inputs. I have gone through the Customs circular 15/2011-Customs - 18-3-2011 and I understand that paper licenses or personal unlocking key (PUK) merit classification as per their individual character under heading 4907 in case of paper license & heading 4911 in case of PUK card the same being other printed matter. Hence if overseas software supplier sends a document courier containing the invoice and license copy, user manual etc & if the IGM filed under cargo mode, the importer can file regular BoE and pay Customs duty and BoE also will be transmitted to banker. This will solve the purpose of customs duty payment, BoE and bank outward remittance etc Basic Customs duty 49070030 - Documents of title conveying the right to use Information Technology software 10% 49119910- Hard copy (printed) of computer software personal unlocking key (PUK) 10% Kindly check and share your view please With rgds Rajesh A
Sir, A paper licence without accompanying software is classifiable under HSN 49070030. If PUK cards are plastic or paper in the form of scratch cards, they are not titles to software. In such a case, they are classifiable under 4911 as other printed matter since they are also not accompanying software. - Thanks
If you are considering the import as an import of goods, then no IGST should also be liable on this transaction since the goods are not crossing customs frontier as is the require of proviso to section 5(1) of the IGST act for levy of IGST. Though this view could be disputed by department and in case the importer is eligble for creidt it can consider paying IGST and taking credit,
Mr. Raghunandhaanan / Ms.Shilpi Many thanks for your valuable inputs With rgds Rajesh A Page: 1 |
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