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TMI BlogExcise on SoftwareX X X X Extracts X X X X X X X X Extracts X X X X ..... Excise on Software - By: - Surender Gupta - Central Excise - Dated:- 1-3-2006 - - In his budget speech Mr. P. Chidambaram (Finance Minister) while presenting the Budget for the year 2006-2007 has said that, " I propose to impose an 8 per cent excise duty on packaged software sold over the counter. Customized software and software packages downloaded from the internet will be exempt from this le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy." Consequently the relevant entries in the First Schedule to the Central Excise Tariff has been amended and exemption granted by of notification no. 6/2006 CE dated 1-3 -2006 . A close scrutiny of the relevant entries and entries in the exemption notification one can reveals that there is no specific exemption has been granted to the software packages downloaded from the internet unles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s he find the real purpose of words used in the exemption notification as "off the shelf". Exemption has been granted to, "Any customized software (that is to say, any custom designed software, developed for a specific user or client), other than packaged software or canned software. Explanation. - For the purposes of this entry, "packaged software or canned software" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means a software developed to meet the needs of variety of users, and which is intended for sale or capable of being sold, off the shelf." Exemption can be divided into two parts; 1 Customized software other than packaged software or canned software. 2 Packaged software or canned software which are sold other wise than 'off the shelf'. If the finance minister was really intended to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempt the software downloaded from the internal from the duty of excise, what the problem in using the clear and unambiguous words? As per oxford dictionary " off the shelf " means "(of goods etc.) supply ready made; available from existing stock " Whether a software which is downloaded from the internet is not ready made or is not available from existing stock? Conclusion: If the legis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lature minister really wants to exempt the software downloaded from the internet and to avoid litigations on this aspect, a clarification must be issued giving the meaning of the expression used in the notification no. 6/2006 CE dated 1-3-2006 for the words "off the shelf". - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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