Taxability - digitisation services

[Guest]

Is the digitisation services taxable under service tax ? ( digitisation means converting hard copies into soft copies in a proper format)

[sudhir V S]

Dear Mr. Aggarwal, Digitisation may not be directly covered under any cateorgy. There may a possibility under Business Support Service under "other transaction processing".

[Madhukar N Hiregange]

I am of the view that the transaction may not be considered as transaction processing. It is actaully conversion of medium. May disclose the depat and then go ahead.

AI Summary

Service tax classification for digitisation services remains uncertain; potential fit under business support service or treated as medium conversion. Classification of digitisation services converting hard copies into electronic files is uncertain for service tax purposes: one view treats the activity as falling under Business Support Service as 'other transaction processing,' while an alternative view regards it as mere conversion of medium not amounting to transaction processing; the discussion recommends disclosing the activity to the tax department before proceeding to manage compliance risk.