Taxability - website and software development - Liability of Membership fees

[SHANTI NARAIN]

My Client is engaged in websites devlopment whether to website development is covered under service tax or not whethere software development is covered under the service tax or not My Client is providing on line services to its customers and also recieves membership fees whether Membership fees is liable to service tax or not

[Surender Gupta]

Software development and website development activities are not liable to be service tax. However, membership fees may be taxable. For this purpose it has to been seen that for what purpose you are charging membership fees. For accessing data, it will be chargeable.

AI Summary

Service tax liability of membership fees depends on whether fees are charged for data access or similar taxable online services. Software and website development services, as described, are not treated as taxable service under service tax. Membership fees must be examined for purpose: charges specifically for access to data or provision of online service functionality constitute taxable consideration and may attract service tax, whereas membership fees not tied to such taxable access may fall outside the service tax net. The operative test is whether the membership fee purchases taxable online access or services.