service tax on software additional user license

[Guest]

we are software developing firm. is additional user license fee attract service tax.

[Surender Gupta]

Yes. From the bare facts and bare understanding of the law, the answer is that this activity is subject to service tax.

AI Summary

Service tax on software licenses confirmed; additional user license fees treated as taxable services under service tax regime. Additional user license charges for software supplied by a development firm are subject to service tax; the activity of charging for such licenses falls within the taxable services net on the facts presented.