Service Tax Group G Item 8 - Information Technology Services (Updated on 13.07.2020)
Service Tax Group G Item 8 - Information Technology Services (Updated on 13.07.2020)
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Information Technology is the Use of Any Computers, Storage, Networking and Other Physical Devices, Infrastructure and Processes to Create, Process, Store, Secure and Exchange All Forms of Electronic Data
Charges: Service Tax on the supply will be charged at the point of services rendered
IT Services:
Computing Services;
Coding and Programming;
Application Development;
Software Development;
System Integration;
Web Development;
Online Platforms (Effective 1 January 2020, for the purpose of service tax, any person who operates online platform is considered a taxable person under Item 12, Group G: Professionals in the First Schedule of the Service Tax Regulations 2018);
Networks Integration;
Data Processing and Administration;
Cloud Services;
Artificial Intelligence;
Internet of Things
Taxable Services:
Provision of software by the software developer;
Services relating to the development, customization or provision of computer system (computer system refers generally to IT equipment and software that works together to perform some specified functions);
Installation or setting up of computer system;
Installation of software into hardware;
Software support and maintenance;
Periodic payments, subscription or maintenance for continued use and updates website related services, (eg development, customization, maintenance of webpage, websites, web portal and online platforms);
Updating to new version, upgrading or modification of data, system or software;
Provision of cloud services;
Managed data centre services (eg managed service, connection charges);
Digital data services delivered through the internet;
Administrative fee for data, system or software;
IT advisory or consultation in relation to data and systems (hardware and/ or software)
Management on IT;
Training services (subject to service tax under Consultancy Services effective 1 January 2019)
Physical security of hardware or server
Maintenance management hardware
Not subject to Service Tax
Charge on storage or co-location of hardware or server;
Leasing or rental of computer, hardware and server;
Assembly of computer, hardware or server
Exemption from Payment of Service Tax on ITS Received
The service that is exempted is an ITS, not other services received by ITS provider;
ITS provider who is the recipient of such ITS must be a registered person;
The ITS is provided by an ITS provider who is a registered person
