Service tax applicability

[Sarwan Agarwal]

Dear Sir, Whether service tax is applicable on Web site development and hosting services and from which date and under which category? Regds

[Madhukar N Hiregange]

The web designing was made liabel wef 1.6.2007. However the web site development would be liable only from 16.5.2008 under ITdevelopment. If compiste service then the predominat activity test would determine from when the same would be liable. Hosting services I am not sure are cocvered under any category. Under supply of tangible goods without giving possession whether the same can be fit is an issue for debate.

AI Summary

Service tax applicability for web design and development clarified; composite service test governs liability, hosting treatment uncertain. Service tax was applied to web designing from the earlier notified change, and website development was made taxable later under IT development services; for composite supplies the predominant activity test determines taxability, while hosting services remain of uncertain classification and are debated as either taxable services or akin to supply of tangible goods without transfer of possession.