Applicability of service tax on software and website development

[Guest]

I am in the business of software and website development. I develop the software inhouse, but acquire the domain and web-space from other agencies. Does my work come under Service or Sales Tax?

AI Summary

Service Tax Applicability on Software Development: Commissions and Designing Services May Attract Tax Under Finance Act 2007. A business owner in software and website development inquires about the applicability of service tax on their activities. One respondent suggests that if commissions are earned from reselling domains or web-space, service tax may apply, especially with the inclusion of designing services. Another respondent argues that, under the Finance Act 2007, the primary activity of software development may not attract service tax, as it is considered the dominant service. However, if components are charged separately, there might be tax liabilities on other activities. Reselling services might not incur service tax, but this view requires judicial agreement.