Service Tax on Software Development Companies
This query is : Resolved
06 May 2009
I had a doubt regarding Service Tax on Software Development Companies.
I am currently doing an audit of a Software Development company who are not paying any Service Tax on the grounds that it is not applicable to them. Is their view correct?
I was under the impresion that Service Tax is applicable even to Software Development Companies as well!
Kindly Help
Regards
Narendra Pingale
I am currently doing an audit of a Software Development company who are not paying any Service Tax on the grounds that it is not applicable to them. Is their view correct?
I was under the impresion that Service Tax is applicable even to Software Development Companies as well!
Kindly Help
Regards
Narendra Pingale
Ca Anand Dubey
(Expert)
06 May 2009
1.Being a "INFORMATION TECHNOLOGY SERVICE" ONLY DEVELOPMENT OF SOFWARE IS EXCLUDED FROM SERVICE TAX.
2.It doesnt mean that the software development co. is exempted from ALL serive tax.
3.Many services like , accounting,payroll,online data access, BPO,istallation and commissioning of software is covered under service tax.
4.Please check whether that company is charging VAT or WORK CONTRACT TAX on software development
5. Service tax is applicable on maintenace and repair of software
2.It doesnt mean that the software development co. is exempted from ALL serive tax.
3.Many services like , accounting,payroll,online data access, BPO,istallation and commissioning of software is covered under service tax.
4.Please check whether that company is charging VAT or WORK CONTRACT TAX on software development
5. Service tax is applicable on maintenace and repair of software
06 May 2009
The services related to development of software is now taxable w.e.f May 2008 under " Information Technology Service".
Ca Anand Dubey
(Expert)
11 May 2009
yes , Mr. Siddhartha is right,I missed that point
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