Taxability - import of services, Service Tax

[Sanjeev Sharma]

Co. A in India has got a software for perpetual use by its foreign collaborator on a one time lump sum payment basis. Updates will be given either free for 3 years and after that on annual payment. Will the payments be taxable under import of services ?

Posts / Replies

[V Ramanujam]

As of now, service tax is not leviable on the software sale, implementation or updation charges. Thus, no service tax liability would arise under import of services in such a case.