Service tax on Electronic Software Distribution, Service Tax

[MITSUI PRIME]

Dear Sir

 

Good Evening

 

Please provide your valuable ssugguation  in below mention , which is related to Service Tax :-

We have interested buy a software form our consulting firm M/s NTT Softwares services pvt ltd. which is software provided through Electronically , Service Tax @ 12.36% and vat or both are applicable on ESD (Electronic software  Distribution) ?

Please provide your valuable sugguation as soon as possible.

Arjun Sachdeva

Alwar 301001

Cell No. 09928158547

 

Posts / Replies

[Seetharaman K C]

Digital distribution (also called content delivery, online distribution, or electronic software distribution (ESD), among others) describes the delivery of media content such as audio, video,software and video games, without the use of physical media usually over online delivery mediums, such as the Internet. Digital distribution bypasses conventional physical distribution methods, such as paper or DVDs. The term online distribution is typically applied to freestanding products; downloadable add-ons for other products are more commonly known as downloadable content. Electronic Sofware Disrtibution is therefore a service  and the following questions need to be answered for determining taxability:

What is the place of provision of the service?

Is the place of provision in taxable territory? If yes, tax will be payable. If not, tax will

not be payable.

Is the provider ‘located’ in the taxable territory? If yes, he will pay the tax.

If not, is the service receiver located in taxable territory? If yes, he may be liable to

pay tax on reverse charge basis.