SPECIFIC SERVICES IN DETAIL
III. INFORMATION TECHNOLOGY SOFTWARE SERVICES
This service was introduced w.e.f. 16th May 2008.
65(105) "taxable service" means any service provided or to be provided
(zzzze) to any person, by any other person in relation to information technology software[1] for use in the course, or furtherance, of business or commerce, including,—
- Development of information technology software,
- study, analysis, design and programming of information technology software,
- adaptation, up gradation, enhancement, implementation and other similar services related to information technology software,
- providing advice, consultancy and assistance on matters related to information technology software, including conducting feasibility studies on implementation of a system, specifications for a database design, guidance and assistance during the startup phase of a new system, specifications to secure a database, advice on proprietary information technology software,
- providing the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software and right to use software components for the creation of and inclusion in other information technology software products,
- providing the right to use information technology software supplied electronically.
Notification No. 02/2010 - Service Tax, dated 27 February, 2010.
Under the category of Information Technology Software Services for packaged or canned software, intended for single use and packed accordingly, are exempt from the whole of service tax, subject to the following conditions, namely:-
(i) the document providing the right to use such software, is packed along with the software;
(ii) the manufacturer, duplicator, or the person holding the copyright to software has paid the appropriate duties of excise on the entire amount received from the buyer; and
(iii) the benefit under notification No. 17/2010– Central Excise, dated the 27th February, 2010 is not availed by the manufacturer, duplicator or the person holding the copyright to software.
- CARGO HANDLING SERVICES
This service was introduced w.e.f. 16th August 2002.
Section 65(105) "taxable service" means any service provided or to be provided
(zr) to any person, by a cargo handling agency in relation to cargo handling services;
Section 65(23) "cargo handling service” means loading, unloading, packing or unpacking of cargo and includes,—
(a) cargo handling services provided for freight in special containers or for non containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and
(b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking,
but does not include, handling of export cargo or passenger baggage or mere transportation of goods.
but does not include, handling of export cargo or passenger baggage or mere transportation of goods.
Scope explained
F.No.354/122/2002-TRU, F.No.354/122/2002-TR
Cargo handling service basically mean that services of packing are provided together with transportation of cargo. Other services of loading, unloading, unpacking may or may not be provided. Thereby we can say that wherever there is a contract for transportation and packaging then this would fall under the category of Cargo handling services and not under any other category.
Exemption
Notification No. 10 /2002-Service Tax, dated 1st August, 2002
The taxable service provided to any person by a cargo handling agency in relation to, agricultural produce or goods intended to be stored in a cold storage, are exempts from levy of service tax.
Notification No.1/2009 – Service Tax, dated 5th January, 2009
Cargo handling services provided to a goods transport agency have been exempted. Conditions for claiming this exemption are:
- Service provider should mention the name and address of the goods transport agency on the invoice issued by him; and
- Service provider should mention the name and date of the consignment note on the invoice issued by him
[1] “Information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment [Section 65(53a)].
Section 65(23) "cargo handling service” means loading, unloading, packing or unpacking of cargo and includes,—
(a) cargo handling services provided for freight in special containers or for non containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and
(b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking,
but does not include, handling of export cargo or passenger baggage or mere transportation of goods.
but does not include, handling of export cargo or passenger baggage or mere transportation of goods.
Scope explained
F.No.354/122/2002-TRU, F.No.354/122/2002-TR
Cargo handling service basically mean that services of packing are provided together with transportation of cargo. Other services of loading, unloading, unpacking may or may not be provided. Thereby we can say that wherever there is a contract for transportation and packaging then this would fall under the category of Cargo handling services and not under any other category.
Exemption
Notification No. 10 /2002-Service Tax, dated 1st August, 2002
The taxable service provided to any person by a cargo handling agency in relation to, agricultural produce or goods intended to be stored in a cold storage, are exempts from levy of service tax.
Notification No.1/2009 – Service Tax, dated 5th January, 2009
Cargo handling services provided to a goods transport agency have been exempted. Conditions for claiming this exemption are:
- Service provider should mention the name and address of the goods transport agency on the invoice issued by him; and
- Service provider should mention the name and date of the consignment note on the invoice issued by him
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