Information Technology Software - Excise Notifications Issued
IN yesterday's DDT, it was pointed out,
The moot point is why the value of canned/packaged software should be determined in terms of section 4A of the Central Excise Act, 1944 when it is not one of the notified goods in terms of that section (please refer Notification No.49/2008-CE(NT) dated December 24, 2008). Can a notification under service tax law override the provisions of section 4A of Central Excise Act, 1944 and stipulate that the duty shall be payable on such items in terms of section 4A by virtue of a service tax notification? Where are we heading to?
Lo and Behold! We suddenly find that Notification No. 49/2008 - CENT has been amended and Packaged software or canned software has been brought under MRP valuation with a 15 percent abatement. For some good reason, the wise TRU kept this notification under wraps and released it a little later. Maybe TRU does not like to part with its notifications and keep them in Public Domain. A law is a law only when you make it available to the public and while we in TIOL try to help them in making their laws available to the stakeholders, they consider as adversaries!
Notification No. ; Dated December 21, 2010
There used to be an excise exemption for packaged software under Notification No. 17/2010; dated February 27, 2010. Now that this product has been brought under MRP, that exemption notification is rescinded.
Notification No. ; Dated December 21, 2010
A similar notification exists in Customs for exemption from CVD - Notification No. 31/2010-Customs dated 27th February, 2010,which is also rescinded.
Notification No. ; Dated December 21, 2010