Taxability - website and software development - Liability of Membership fees

[Asked by Guest]

My client is engaged in developing software as well as websites,and aslo receiving membership fees from its customers. My querries are 1 whether sofware and website development covered under the service tax or not. Whether membership fee is liable to service tax or not Regards CA Ramvir

[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: membership fees can be taxable if they grant access to data or ongoing taxable services.
Software and website development activities are not liable to service tax as described. Membership fees may be taxable depending on their purpose: if charged to provide access to data or ongoing services, such fees are chargeable to service tax, and liability must be determined by examining whether the fee confers access to taxable facilities or services.