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

Web Designing Services Taxable; Domain Registration Not Taxable Unless Commission-Based; Software Development Generally Not Taxable A user inquired about the applicability of service tax on various web-based activities, including domain registration, web designing, web hosting, portal development, and web-based software development. Additionally, they questioned whether developing non-web-based customized software for clients would affect tax liability. The response clarified that domain registration is not taxable unless sold on a commission basis. Web designing services are taxable, whereas software development is not. The distinction between designing and development is crucial for tax purposes.