Service Tax exemption for website development service

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This query is : Resolved

Max Payne (Querist)

19 February 2009 Sir,
Is service tax exemption available for website development service? For domestic and export service. (F.Y.2007-08 and 2008-09)

Dayal

Dayal (Expert)

19 February 2009 The consideration received by you for the web-design services would be taxable under the category of design service. The taxable service category of design service includes services provided in relation to designing of furniture, consumer and industrial products, packages, logos, websites, graphics, production of 3D objects and corporate identity designing. This category became taxable with effect from June 1, 2007. As per the provisions of the service tax laws, any person who fails to pay service tax is liable to pay interest @ 13% per annum. Further, nominal penalty would be applicable for late registration. In case, tax and interest is deposited voluntarily prior to issuance of any show cause notice, penalty should not apply if a case of bonafides is established.

There is no abatement under the said category for domestic services

However under export of services if the service is used outside india and payment is received in convertible FE then yes, it will be treated as exports

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