Service Tax on Packaged Software on Service part of the Value Exempted
[Service Tax Notification No. 53 dated 21st December
2010]
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 referred to in item (v) of sub-clause
(zzzze) of clause (105) of section 65 of the said
Finance Act (hereinafter referred to as ‘such service’), for packaged or canned
software (hereinafter referred to as ‘said goods’) from the whole of service tax,
subject to the condition that-
(i) the value of the said goods domestically
produced or imported, for the purposes of levy of the duty of Central Excise or
the additional duty of customs leviable under
sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), if
imported, as the case may be, has been determined under section 4A of the
Central Excise Act 1944 (1 of 1944) (hereinafter referred to as ‘such value’);
and
(ii) (a) the
appropriate duties of excise on such value have been paid by the manufacturer,
duplicator or the person holding the copyright to such software, as the case
may be, in respect of software manufactured in India; or
(b) the appropriate duties of customs including the additional
duty of customs on such value, have been paid by the importer in respect of software
which has been imported into India;
(iii) a declaration made by the service provider on the invoice
relating to such service that no amount in excess of the retail sale price
declared on the said goods has been recovered from the customer.
Explanations.- For the
purpose of this notification, the expression,-
(i) “appropriate duties of excise” shall mean the
duties of excise leviable under section 3 of the
Central Excise Act, 1944 (1 of 1944) and a notification, for the time being in
force, issued in accordance with the provision of sub-section (1) of section 5A
of the said Central Excise Act; and
(ii) “appropriate
duties of customs” shall mean the duties of customs leviable
under section 12 of the Customs Act, 1962 (52 of 1962) and any of the
provisions of the Customs Tariff Act, 1975 (51 of 1975) and a notification, for
the time being in force, issued in accordance with the provision of subsection (1)
of section 25 of the said Customs Act.
[F. No. 354/189/2010-TRU]