Scope of service tax - sale of branded software and tailor made software

[DINESH MITTAL]

whether sale of Branded software and tailor made software are covered under service tax

[Rama Krishana]

Yes, sale of branded software and tailor made softeares are covered under service tax net. Though there are certain minor exemption in respect to software, you need to pay service tax if you are not eligible for those exemptions.

[Vijay Chitte]

The issue is still confusing and prone to litigation. Hence, whatever you decide to do, it is better to inform department in writing, to avoid charge of suppression of facts (I am sure department is as confused as you are).

AI Summary

Service tax on software sales: branded and tailor made software generally fall within taxable services, subject to exemptions. Sales of branded and tailor made software ordinarily fall within the scope of service tax and attract tax unless a specific exemption applies; taxpayers should confirm exemption eligibility and consider informing the tax authority in writing to mitigate dispute risk.