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

AI Summary

Service Tax Applicability on Website Services: Taxable Dates & Categories Clarified; Hosting Services Classification Debated. A query was raised regarding the applicability of service tax on website development and hosting services. It was clarified that web designing services became taxable from June 1, 2007. Website development services would be liable for service tax from May 16, 2008, under the IT development category. For composite services, the predominant activity test would determine the tax liability. There is uncertainty about whether hosting services fall under any specific category, and it is debated whether they could be considered under the supply of tangible goods without possession.