Service Tax on Software Implementation

Hi Friends,

 

We are having some doubt on service tax applicability on IT products. For eg. Implementation of any software with network facility. Whether service tax is applicable on implementation charges or not?  If so the reason for applicability under which notification.
Replies (4)
hi, jasmine under the service tax act (introduced by the Finance Act 1994) service provided to a customer by a commercial concern in relation to on line information and database access or retrieval or both in electronic form through computer network will come under the service tax Act . so u provide the I.T. products and implementation facility through computer net work so u r liable to charge service tax that is 12.36% Abid
The Sale of Product would attract VAT / CST. Implementation charges would not attract service tax. But AMC will attract Service Tax
Implementation of any software with network facility willnot service tax bcoz it comes under information technogy service, which comes under Bussiness auxiliary service where information technolgy service has been excluded as per information technology service any service in relation to designing, developing of softwareor system networking or any other service primarily in relation to maintainence of computer has been excluded hence it does not comes under purview of service tax sinc e it is not specificallly defined under any category of service. as far as my knowledge is concerned.

Hi,

kindly help me on the following issue

whether implemetation and migration of software is taxable or not

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