Service Tax on Software Services

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We provide information technology services to our clients. Our work involves configuration of the freely available open source software on computers. Such solutions are typically used as servers or for networking services. The software is invariably free and we charge for our services. So far we have not been charging any service tax from out clients since as  
per our understanding this activity would qualify as Information Technology Service under Business Auxiliary Services.

However, there is some confusion regarding this since we have received differing opinions. Can you please clarify and let us know if we should charge service tax from our clients ?
Replies (1)
in my view, it is basically IT service. But after installation of software, any maintenance service will be taxable as repair service.

better divide fees for installation and maintenance .

Pay tax only for the latter portion.


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