Full Overview of GST & Income Tax Rules for Buying Software from Overseas Vendors

In today’s digital era, businesses and taxpayers frequently purchase software and digital tools from foreign vendors that do not have a Permanent Establishment (PE) in India. These purchases often include cloud services, SaaS subscriptions, and standard software licenses, usually paid through credit cards, PayPal, or other online gateways. While the buying process is seamless, such transactions carry important tax implications.

Below is a clear summary of the GST and income tax rules applicable to foreign software purchases from vendors without an Indian PE, including direct purchase provisions and the unchanged Reverse Charge Mechanism (RCM) requirements. Read Also: https://sag-infotech.mozellosite.com/blog/params/post/5172112/tax-rules-buying-it-gst-software-overseas-vendors

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