Service tax applicable

Dear Mr.N. Gopalakrishnan

Whether Service Tax is applicable for online service rendred to foriegn customer? Nature of service : Online Software upgrade

The services named Online Software Upgrade is came under the INFORMATION TECHNOLOGY SOFTWARE SERVICES of unser sub-sections (zzzze) of section65(105).It is an upgration of technology through internet.Software and upgrades of software are also supplied electronically, known as digital delivery. Taxation is to be neutral and should not depend on forms of delivery. Such supply of IT software electronically shall be covered within the scope of the proposed service. 

But any service which is taxable under clause 105 of Section 65 may be exported without payment of service tax. 

Thanks

Snehungshu

it is covered under service tax, but since it is export of seervice so service tax will not levied.

Service Tax will applicable.. agreed..