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Downloading paid software for personal use may attract 10% service tax in India

According to a report published in Hindu Business Line, people in India downloading a paid software application including games from a foreign supplier or website into their computer or to their mobile phone for individual use may have to pay a service tax of 10 per cent to the government.

According to a report published in Hindu Business Line, people in India downloading a paid software application including games from a foreign supplier or website into their computer or to their mobile phone for individual use may have to pay a service tax of 10 per cent to the government.

The report goes on to say that individuals downloading software for personal use would need to pay the service tax, seek registration under the service tax provisions and also file the statutory returns thereafter. Non-compliance with the provisions could trigger interest and penalty.

Till now, service tax was payable on electronic download of software only if they were intended for furtherance of business or commerce by the person downloading. The amendment proposed in the latest Union Budget seeks to eliminate this pre-requisite.

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