Service Tax on software

[Surender Gupta]

What is the latest position of service tax on software

[Brijesh Verma]

Software development, design, upgradation advise, right to use as well as maintenance is taxable under different categories

[Surender Gupta]

Dear Brijesh Verma Ji, I have put this query for general discussion and to explore views of experts. Please explore more about all aspects as per your understanding and opinion. All the professionals who have any view on this issue, please come forward and post your replies.

[Ramanujam Varadarajan]

Design, development, upgradation of software - liable to service tax under ITSS

Maintenance or management of software - liable to service tax under Maintenance or repair

Transfer of software through a media -  liable to VAT/CST

Import of packaged software through a media - liable to customs, transfer of right to use portion excluded if service tax is paid

Domestic development/replication of packaged software through a media - liable to excise - right to use portion excluded if service tax is paid

In States like Karnataka - Software development/maitenance is treated as Works contract liable for VAT

AI Summary

Exploring Tax Implications on Software: Service Tax, VAT/CST, and Works Contracts Under ITSS Rules A discussion forum addresses the topic of service tax on software, with participants exploring various aspects. One participant notes that software development, design, upgradation, and maintenance fall under different taxable categories. Another seeks further expert opinions on the matter. A contributor clarifies that software design, development, and upgradation are subject to service tax under Information Technology Software Services (ITSS), while maintenance is taxed under maintenance or repair services. Software transferred through media is liable to VAT/CST, with additional tax implications for imports and domestic development. In some states, software services are treated as works contracts subject to VAT.