Service tax for web hosting services

Queries 742 views 2 replies

Dear Sir,

        I started a new Websites firm in Kurnool, Andhra Pradesh that include the services like Website Designing, Logo Designing, Web Hosting, 

       I am in need of clarification related to the service tax (I don't know how much to collect).

       Clarifications Needed:

            1. I provide Website at free of cost and hosting services collected for every 3 months(i.e., Rs. 225/-) in 4 installments per year. I charge only for hosting services. Please let me know what is the service tax and any other taxes levied for above mentioned amount.

            2. What is the service tax and any other taxes levied for Logo designing, Web designing, Web Hosting, etc.

Please do the needful. 

Thanks and regards,

Rajesh

Replies (2)

Hi, Rajesh,

I also belongs to KNL, for your ST clarification.

pl note that Service Tax threshold limit is upto 10 Lakhs No Service tax, when u r crossing 9 lakhs revenue , you need to apprly ST registration, after that you may charge service tax in your service bills.

Service Tax is required to be paid on all services except those specified in the negative list of services. However, a small scale service provider has the option of availing service tax exemption in case the aggregate turnover value of taxable services does not exceed Rs 10 Lakhs in a financial year. Recommended Read: What is Service Tax and Service Tax Rate in India Therefore, if the aggregate value of services does not exceed Rs. 10 Lakhs in a financial year, the service provider can claim benefit of this service tax exemption and he wonโ€™t be required to pay any service tax on such services. Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs. Recommended Read: All about Service Tax Registration What is Service Tax Number The service provider also has the option of not availing this exemption and can pay service tax irrespective of his total aggregate turnover. However, once the service provider starts paying service tax during any financial year, such option shall not be withdrawn during the remaining part ofsuch financial year. Recommended Read:- Procedure for Payment of Service Tax Due Date for Payment of Service Tax The concept of Service Tax Exemption was first introduced in the year 2005 vide Notification No. 6/2005 wherein aggregate services below Rs 4 Lakhs were exempted from service tax. This limit was increased to Rs 8 Lakhs in year 2007 vide Notification no 4/2007 and then increased to Rs 10 Lakhs in year 2008vide Notification No 8/2008.


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