exported web develoment (not designing)

This query is : Open

ramandeepchawla (Querist)
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25 January 2009 Whether the web development ( not designing)is
taxable service under service act.
> all the development is made for the overseas
client i.e exported (no office in India)and fees is received in convertible
foreign exchange.
> new business,gross receipt till date are 10,15,000 rs. it include 150000
received on 8 jan 09.
no service tax number is applied yet. and not registered
under STPI etc.

> now whether CO. should apply for service tax no. or not. someone
told me that amendments are made in July 08. so if service tax is applicable receipts will be calculated after that date only. Pls guide

1. This is newly incorporated (in may 08) pvt ltd co. with less then 10 employees.
2. The payment is received on the constuction of a portion i.e the requiered facility in web site.
Only one client is there.
3.The service used by clint outside india. There is no such online support from india it is done by client from their rnd.
4. No amc in the contract.

Dayal

Dayal (Expert)
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25 January 2009 Now first step is to see where this service falls, it falls under the second category.

Clarify the following

Whether this is one time charge
Services will be used outside india
We will not support the system from india
whether there is amc attached to the development contract
Whether there will be online / onsite support

We can evaluate based on the above, apparently it seems to be export of service, but the terms of contract needs to be known, before affirming your views