07 November 2007
Software is considered as part of computer. Is there any difference between computer maintaneance, software maintaneance and hardware maintaneance? Are they all liable for Service Tax?
07 November 2007
The department had earlier clarified in the circular dated 17/12/2003 that maintenance or repair of computer software was not liable to taxed under the service of Maintenance and Repair services, by taking a view that computer software was not a tangible asset ( goods) but an intangible asset which remained in installed condition.
However by their subsequent circular date 07/10/2005 the department has revised their view on the basis of supreme court judgment in the matter of Tata Consultancy Services . The department has now held that maintenance or repair or servicing of software is liable to service tax under “ Maintenance or Repair services w.e.f. 09/07/2004
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