Service tax on govt. data entry contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2011 In the case of an assessee engaged in the business of data entry work of electoral roll work for Gujarat Government having gross receipt exceeding Rs. 10 lacks and the payment for this work made by Collector. Let me know:

1. Is this service taxable? If Yes, under which category?

2. Is there is any abetment or exemption benefit which he can enjoy?

CS Bijoy

CS Bijoy (Expert)
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24 August 2011 Data processing is a service performed with a computer using the customer's data. Entering, storing, manipulating, or retrieving a customer's data is taxable. But merely using the computer as a tool to help perform a professional service is not taxable.

We've prepared a partial list of taxable data processing services. This will give you an idea of the type of service that is taxable when performed using a computer. If you provide a different service for a client, and are not sure if it's taxable, give us a call at the toll-free number listed on this bulletin.

Examples of taxable services are:

Accounts payable

Accounts receivable billing

Check preparation

Computer-aided drafting, when the client

provides specifications

Data conversion services

Editing client's data

Entering client's data

Totalisator services

Internet services: creating web (home) page

and providing server space Formatting client's data

Data storage

Manipulating client's data

Preparing W-2 forms, payroll tax returns,

and payroll checks

Producing reports from client's data

Transcription services

Word processing services

Compiling and producing records

Scanning documents