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
CAclubindia
