29 February, 2016

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Service Tax Exemption under Budget 2016 to Softwares Recorded on Media covered under Legal Metrology Act

Service Tax Exemption under Budget 2016 to Softwares Recorded on Media covered under Legal Metrology Act

By CA Ankit Gulgulia (Jain) | ankitgulgulia@gmail.com

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts service in relation to Information Technology Software (hereinafter referred to as such services) leviable to service tax under section 66B read with section 66E of the said Act when such Information Technology Software is recorded on a media (hereinafter referred to as such media) under Chapter 85 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), on which it is required, under the provisions of the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force, to declare on package of such media thereof, the retail sale price, from whole of the service tax subject to the condition that-
(i) the value of the package of such media 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 such media 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 such media 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 such media 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 sub-section (1) of section 25 of the said Customs Act.
 
[F. No. 334/8/2016-TRU ] | NOTIFICATION No. 11/2016- Service Tax | New Delhi, the 1st March, 2016
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