Sankarshan Mukhopadhyay wrote:
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Manish Kathuria wrote:
Is Service Tax applicable on open source software services namely installation, configuration and customization ? Please let me know if someone has clarity on this issue.
IANAL :)
Open Source Software Services *is* a service/consultative practice and thus would (ideally...) have a Service Tax component included
- -SM
As per available information with me, if you classify the services as "Information Technology Services" then probably the services wont fall under the Service Tax net. There is a service category called Business Auxiliary Service (added in 2003) which excludes "Information Technology Services" from the service tax net. Please refer to the Section 2 of the following circular available on the service tax web site:
http://www.servicetax.gov.in/servicetax/circular/st_circ_62-2k3.htm
There are some news reports also which add to the confusion:
http://www.thehindu.com/2006/01/23/stories/2006012300241700.htm http://www.thehindubusinessline.com/2005/10/15/stories/2005101502421100.htm
It would be great if any of the firms / companies charging or paying or not paying service tax can shed more light on this.
-- Manish
Manish Kathuria wrote:
As per available information with me, if you classify the services as "Information Technology Services" then probably the services wont fall under the Service Tax net. There is a service category called Business Auxiliary Service (added in 2003) which excludes "Information Technology Services" from the service tax net.
It says "The use of computer in these services is secondary and the primary activity is that of business-related work. *Thus these services will be taxable as Business Auxiliary Services.*"
Are "Business Auxiliary Services" not taxable?
Regards,
Sameer N Ingole wrote:
Manish Kathuria wrote:
As per available information with me, if you classify the services as "Information Technology Services" then probably the services wont fall under the Service Tax net. There is a service category called Business Auxiliary Service (added in 2003) which excludes "Information Technology Services" from the service tax net.
It says "The use of computer in these services is secondary and the primary activity is that of business-related work. *Thus these services will be taxable as Business Auxiliary Services.*"
Are "Business Auxiliary Services" not taxable?
Regards,
Business Auxiliary Services are subject to service tax excluding Information Technology Services as defined.
-- Manish
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Manish Kathuria -
Sameer N Ingole