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CD-ROM titles are not software, say customs authorities

Till recently, CD-ROM titles were classified as 'software' and did not attract any Customs duty. This move will affect importers and is bound to encourage piracy, industry sources said.

T O D A Y

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Importers of CD-ROM titles were taken by surprise when the customs recently decided to levy a basic duty of 10 per cent, an additional duty of 2 per cent apart from a countervailing duty of 18 per cent on the duty on CD-ROM titles.

Further, in Bangalore, the customs department levies a duty of 40 per cent for entertainment and edutainment CD-ROMs and 32.50 on other CD-ROM titles including operating systems. "There are a lot of aspects which are still not clear. While Bombay and Madras customs levy a duty of 32.5 per cent on entertainment and edutainment CD-ROM titles, in Bangalore the duty works out to 40 per cent. Hence, there is no uniform pattern across the country," an industry source said.

The National Association of Software and Service Companies is planning to take up the issue with the finance department. Industry sources feel that there will be a significant rise in prices of titles and this will encourage piracy. Prices of CD-ROM titles, hitherto sold in the Rs 500-3,500 range, will go up by over 25 per cent.

- Compiled from the Indian media

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