Category of Service Tax
This query is : Resolved
Sandeep Mestry
(Querist)
30 May 2011
1) We are issuing our product platform license to our partner is under what category?
2) As well as we are taking set up fees from customer is under what category?
2) As well as we are taking set up fees from customer is under what category?
Madhukar N Hiregange
(Expert)
03 June 2011
The query is not clear as to what is the service and waht are the charges for which billed
18 July 2024
In the context of GST (Goods and Services Tax) in India, here's how the services you mentioned would typically be categorized:
1. **Platform License Issuance to Partner:**
- When you issue your product platform license to a partner, this transaction would fall under the category of **"Intellectual Property Services"** or **"Licensing Services for the right to use intellectual property"**.
- Under GST, this would generally be classified under SAC (Service Accounting Code) 997337 which covers licensing services for the right to use intellectual property and similar products.
2. **Set-Up Fees from Customer:**
- When you receive set-up fees from a customer, the classification would depend on the nature of the services provided in exchange for the set-up fees.
- If the set-up involves installation, commissioning, or similar services related to tangible goods, it could fall under **"Installation Services"** or **"Erection, Commissioning or Installation Services"**.
- If the set-up fees are related to digital services or software implementation, it could fall under **"Information Technology (IT) Services"** or **"Software Implementation Services"**.
- Each specific service may have a different SAC under GST. For instance, IT services generally fall under SAC 998314 or 998319 depending on the exact nature of the service provided.
It's crucial to correctly classify the services provided under GST as it determines the applicable tax rate and compliance requirements. Always consult with a GST expert or refer to the official GST guidelines for the most accurate classification and SAC codes applicable to your specific services.
1. **Platform License Issuance to Partner:**
- When you issue your product platform license to a partner, this transaction would fall under the category of **"Intellectual Property Services"** or **"Licensing Services for the right to use intellectual property"**.
- Under GST, this would generally be classified under SAC (Service Accounting Code) 997337 which covers licensing services for the right to use intellectual property and similar products.
2. **Set-Up Fees from Customer:**
- When you receive set-up fees from a customer, the classification would depend on the nature of the services provided in exchange for the set-up fees.
- If the set-up involves installation, commissioning, or similar services related to tangible goods, it could fall under **"Installation Services"** or **"Erection, Commissioning or Installation Services"**.
- If the set-up fees are related to digital services or software implementation, it could fall under **"Information Technology (IT) Services"** or **"Software Implementation Services"**.
- Each specific service may have a different SAC under GST. For instance, IT services generally fall under SAC 998314 or 998319 depending on the exact nature of the service provided.
It's crucial to correctly classify the services provided under GST as it determines the applicable tax rate and compliance requirements. Always consult with a GST expert or refer to the official GST guidelines for the most accurate classification and SAC codes applicable to your specific services.
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