TaxTMI 
TaxTMI 
Taxability of services
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....axability of services<br> Query (Issue) Started By: - sunil mehta Dated:- 26-9-2006 Last Reply Date:- 29-9-2006 Service Tax<br>Got 3 Replies<br>Service Tax<br>whether the foll: services are liable to servicetax? : (A)i)web-designing ii)web-hosting iii)web-based software iv)portal development & other related work. (B)Any other custmised software(non web based) Reply By Surender Gupta: The Reply: W....
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....eb designing, hosting, software development and other related activities are not liable to service tax. Reply By Madhukar N Hiregange: The Reply: It appears that all the services are software development service therefore may not be liable at all. Reply By Vijay Chitte: The Reply: Dear Sunil, As per your query web designing, web hosting is a taxable service under the catergory of "Business Suppor....
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....t Service". The act provides for a defination of BSS which it includes the term "Infratructural support services". For the purpose of this clause, the expression "Infrastructural support services" includes providing office along with office utilities, lounge, reception, with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security". Web Hos....
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....ting service can be said to be "Business Support Service" since it support the "Business activities" of an organization. Internet and Web Hosting" is a "base" and an "underlying foundation" for the web presence of an organization. A web presence allows an organization to carry out their business effectively and with higher efficiencies. Therefore, providing "Web Hosting" is "infrastructural" in na....
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....ture. If you are selling the customised software then 4% vat applicable and if you are providing customised related serivce, then its fall under the "Repaire and maintainance of computer software service" for details, you may refer circular "F.No. 81/2/2005-st. Vijay Chitte-Claris.<br> Discussion Forum - Knowledge Sharing ....