|
In a move that will extend some respite to software dealers facing the brunt
of double taxation across the country, Microsoft distributors-Redington India
and Ingram Micro have circulated mails amongst dealers that they (distributors)
will now be importing all Microsoft software licenses as paper licenses.
This move will lead to a hike in the cost of the license as the distributors
will be importing the goods by paying a certain amount of custom duty on the
same. The licenses will hence be made available to software dealers by charging
only the local levy like VAT and/or other local levy like Octroi, freight, etc
as applicable in their respective regions.
Since a major portion of the sales revenues of dealers comes through the sale
of Microsoft licenses, it will lessen the burden of double taxation to a
considerable extent. On the other hand, other players in the fray, namely
Oracle, Adobe and Symantec will have to soon take a decision on the matter and
until then the dealers will have to continue paying both service and sales tax,
and deduct the TDS on their licenses.
As per Redington's mail, “With immediate effect, there will be changes in
modalities of Microsoft license business. All license business will be through
physical license. Hence, we are revising the Market Operating Conversion to Rs
49.15 per USD, with immediate effect. This rate is applicable for Microsoft open
license papers (MOLPs), open value license (OVL) anniversary and CASA orders.”
Whereas the mail from Ingram Micro stated, “There will be a change in
delivery mode for all orders of MOLP license and Media placed by you with
immediate effect. Ingram Micro will
be importing Microsoft MOLP license(s) and Media only in the physical form. The
same will be billed to you with local levy of VAT and/or other local levy like
Octroi, freight etc as applicable.”
Dealers across the country stated that this move will solve much of their
growing concerns regarding TDS as with custom duty coming into the picture they
will no longer have to pay service tax on the licenses sold/bought. Page(s) 1
| 
