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Vat or cst on web development

1242 views 2 replies

AK

Sales

100 Points Joined June 2010

Is VAT or CST applicable on Website Development service?

The website development is done on customer's server via internet.

The company providing website development service is doing domestic turnover of less than 9 lakhs and not registered with service tax at present nor charging service tax to customers. Some customers are deducting 10% TDS.

Regards,

Replies (2)

Harshal Fifadra

Chartered Accountant

1489 Points Joined August 2011

I assume from your query that the dominant intention is to provide service . if it is so, then vat or cst is not applicable . Vat or Cst is applicable when there is a transfer of property in goods . Website development service doesn't involve any transfer of any property in goods , hence vat or cst is not applicable.

Chinnu Raj

CA Final Student B.Com

1067 Points Joined July 2012

VAT or CST will be applied only in the case of purchase or sale of goods i.e, when there is a transfer of goods. In this case there is no transfer of any goods,so VAT or CST cannot be applied and as their is a service,service tax may be applied...