Applicability of service tax on software and website development

[Asked by 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

Composite service characterisation controls service tax on software and website development; dominant component determines taxability.
Applicability of service tax to software and website development depends on whether the supply is a composite service with a dominant component; in house software development as the primary activity will generally be treated according to the dominant element. Separately charged components such as domain or web space may attract service tax individually, and commission from resale of such services can be taxable, whereas treating resale as trading may avoid liability but lacks clear judicial concurrence.