Taxability - website and software development - Liability of Membership fees

[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

Software Development Not Taxed; Membership Fees May Be Taxable Depending on Purpose Under Service Tax Rules A client involved in software and website development, as well as collecting membership fees, inquired about the applicability of service tax to these activities. The response clarified that software and website development are not subject to service tax. However, membership fees could be taxable, depending on the purpose for which they are charged. If the fees are for accessing data, they may be subject to service tax.