Liable to service tax - customised software

[sunil mehta]

Pl.give me reply in respect of foll:web based activities: i)Domain registration services ii)web designing iii)web hosting iv)portal development v)web based software development B) Will it make any difference if any other customised software(non-web based) is developed for client?

[Surender Gupta]

Domain registration service as such is not a taxable activity. However if you are selling on commission basis, the same may be taxable. Web site designing service is taxable but, the development of software is not. Therefore you have to distinguish the both.

AI Summary

Service tax on web services: web designing is taxable, software development is not, and domain registration is generally not taxable.
Domain registration is not taxable as a standalone activity though commission-based sales may attract tax; web site designing is taxable; development of software, including customised or web-based software developed for a client, is not treated as a taxable service. The key operative requirement is to distinguish web designing services from software development when determining service tax liability.