Information Technology Software Service, Service Tax

[jitendra Gupta]

As perSection 2(d) read with Section 2(f) of the central Excise Act,1944, Customised software is an excisable goods and covered under 'Information Technology Software' under chapter heding 85248000, though the duty involved has been exempted vide Notification no 6/2006 CE as amended vide Notification No.6/2008 C.E..

Simultaneously, service tax has also been levied on the Development of Information Technology Software.

An assessee develops customised software and sells it to specific customers after payment of Service Tax.  The assessee is registered service provider of 'Management, Maintenance and Repairs" Service.  He also pays service tax on Annual Maintenance Contracts of the softwares sold by him.

In which case, excise duty will be paid on the software, had it not been exempted, and in which case will it attract Service Tax.

Posts / Replies

[Surender Gupta]

According to me Notification no. 6/2006 CE as amended do not exempts packaged software or canned software.

Further, an exemption notification no. 53/2010 ST exempts software where duty of excise or duties of customs have been paid on MRP value.

Therefore, an assessee who develops customised software and sell it to specific customer after availing exemption under Notification no. 6/2006 CE in respect to customized software, he would be liable to pay service tax.