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Service Tax on Export Software Development Service

Service Tax (Legacy) 4308 views 5 replies

Hi,

Kindly advise the liabilty of Sevice Tax on Software Development (Export Service) which is providing to Singapore base Company & it's not having any office in India.

Replies (5)
Development of Computer Software is not liable for service tax as per Circular DOF no. 334/1/2007-TRU dt. 28/03/2007
Hi Mahendra, But This Service provided from India to Singapore Resourcing basis & the Invoice being raised Monthly basis of resource utilization durig the Month for the same. Kindly advise on the same.
Is it possible for you to give me the complete details
Service Type = Software Development (According to Customer requirement) Country = India & Singapore Duration = One Year Billing = Monthly (Resources Basis)
I do not think the payment/billing criteria u mention will effect the applicability of Service Tax. Apart from that if we read the departments' clarification regarding development of software it is quite clear that tax will not apply on software development, i m reproducing herewith the relevant abstract "7.9 Section 65(64) amended to clarify that 'goods' for the purposes of this service(i.e. Management, maintenance or Repair service) includes Computer Software. Consequently, maintenance or repair of computer software will be leviable to service tax under this category. It may be noted that development of computer software continues to be not leviable to service tax, being an 'information technology service"-Circular DOF No. 334/1/2007-TRU, dt 28-3-2007 From the above it is clear that it is maintenance, repairs and servicing of Software which is taxable service and not development of software irrespective whether the service provided is in India or an Export of Service. Having said so if you still feel that service tax is leviable and any other category of service is applicable to the above kindly let me know.


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