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,
AK
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...
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