Software Goes Cheap

Wednesday, December 10, 2008: This may actually be the best time for you to go and do some IT shopping. Only yesterday, we covered a news story about IT hardware industry deciding to cut down prices of the hardware and to pass on the four per cent across-the-board excise duty cut to consumers. Now, the software industry seems to have taken a cue from it and is reportedly reducing the price of software as well. The affect has come in force with the reduction in tax rates, thus boosting the import of software.
According to sources, post 8 December 2008, the CVD (or countervailing duty is an additional customs duty equal to CENVAT) on shipments will be charged at the rate of 8.24 per cent, instead of 12.36 per cent. Orders placed before 8 December 2008 will be charged at the previous rate of 12.36 per cent. This means a saving of almost 4.12 per cent. While dealers and distributors are going to get direct benefit with the boost in sales as the overall price of a box -- hardware plus software -- will be coming down, the customers can also stop worrying and go ahead with their purchasing for X-Mas and New Year!