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Setup fee is taxable or not ?

Avinash (STUDENT) (23 Points)

02 January 2017

hello, I am selling hosting services to my client on my website and they pay me plan fee/setup fee yearly by Bank transfer to my current account for server and maintenance. Now i am having few questions: 1. Setup Fee/Plan Fee/Maintenance Fee is Taxable or NOT ? 2. If this is taxable then its under income tax or Service Tax ? 3. Is there any limits for Service Tax ? please reply thanks in Advance

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4 Replies

Dinesh Singh (Student) (340 Points)
Replied 02 January 2017

yes, it is taxable under both income tax and service tax. In income tax it is taxable under the business head. Also your service is exempt upto 10 lakh as per notification no. 33/2012 subject to condition.

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 02 January 2017

the media includes websites also, selling space on website is liable to service tax. @ 15%

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 02 January 2017

and ur service is exempted upto 10lacs, as sssp.

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 02 January 2017

also, service tax is not ur income and exp. its just collected by provider and deposited to govt. ur actual taxable liability will be in income from b&p.