Advertisment

Channel shocked about Softcell director's arrest

author-image
CIOL Bureau
Updated On
New Update

MUMBAI, INDIA: The Directorate of Revenue Intelligence (DRI) has arrested Sunil Dalal, Founder and Director of Softcell Technologies.

Advertisment

The DRI alleged that Softcell imported embedded software from Microsoft Singapore in the form of CDs and DVDs and it paid customs duty only for the software, which was present in CD format.

It claimed that this tax was just five percent of the value of the software shipment, while the tax for software imported in the form of paper licences was unpaid.

But D Venkatesh, Director of Softcell revealed that for the past 18 months, DRI has been interrogating them. "We received a notice from DRI in February 2007. The actual dispute is on the confusion of zero percent duty for license software. Now the government claims that it attracts 12.5 percent tax,” he added.

He continued, “We never denied paying the tax, but we asked the DRI to give us a notice which clearly stated how much tax to be paid and under which section of the tax laws? Till this day we have not received any such notice. Without giving much information DRI arrested Dalal, which is very saddening.”

Needless to say, this news came as a shock to the channel community and they fear that similar instance can have a debilitating effect on the software business in the country.

tech-news