Details of earlier Query required by Mr Mahender

Service Tax (Legacy) 1548 views 9 replies

K Renu

Company Secretary

48 Points Posted on 10 October 2007

Mr Mahender

Mine is a Company into Educational Rehabilitation. The main business of the Company is to develop, customise the software and install in the Schools computer. The softwre is w.r.t. all Schools and colleges's activities viz. exams, fees, transport, staff management, etc. The Company provides onsite support at schools and also traines the school staff. The client agreement may run into 10 yeras time on an average. The Company charges for the Customisation of the software, One time IT service Charges, Charge for Card(where the software is installed) , Card readers, etc. The Company also gives on line admission facilities to the schools and colleges through its own website.The Company does not charge anything seperately for this. Now whether the Service Tax Act is applicable? exemption under what head (if any), If the misc income increases more than the main activity income, what is the liability of the Company.

Regards Renu

Replies (9)

MAHENDRA IYER

SERVICE

315 Points Posted on 10 October 2007

1) Software Development, customization and installation-exempt from service tax NT Cir 97-7-2007 reference 053.01/23.08.2007 2)Online admission facilities to schools and colleges- will be chargeable to service tax under the category Computer Network Services. However as per the revise provision of section 67 no service tax will be charged on Services provided free of cost. 3) Misc. Income- Unable to understand the question, but assuming the same is w.r.t. ST. It does not matter whether it is main activity or otherwise one need to ascertain under which category service tax is applicable and thereafter charge accordingly to the clients.

K Renu

Company Secretary

48 Points Posted on 12 October 2007

Dear Sir As per my info there is no head as Computer Network services. The only taxable head under which online services fall is "on-line information and database access or retrieval under which designing, development of computer software is exempt.