Information technology software services
"Information technology software" is any representation of instructions, data, sound, or image, including source code and object code, recorded in a machine-readable format, and able to be modified or provide interactive functionality to a user, using a computer, an automatic data processing machine, or any other device or equipment. A wonderful excerpt on 80 g begins here.
Get tax exemptions under section 80g deduction.
"Taxable Service" refers to any service offered to a person or to be offered to that person in connection with information technology software, including:-
(a) creating software for information technology,
(b) researching, evaluating, creating, and developing software for computers,
(c) services for modifying, enhancing, implementing, and other similar tasks involving software for information technology,
(d) offering consultation, assistance, and advice on issues relating to information technology software, such as conducting feasibility studies for system implementation, defining database design specifications, assisting with the setup of new systems, offering guidance and assistance, and offering advice on proprietary information technology software,
(e) granting the ability to use information technology software for commercial purposes, including the ability to copy, sell, and distribute software as well as the ability to utilise software components to create and incorporate into other information technology software products,
(f) granting access to electronically delivered information technology software.
Classification of Taxable Services
(1) The categorization of taxable services shall be made in accordance with the provisions of subsection (105) of section 65.
(2) If a taxable service is initially classifiable under two or more subclauses of clause (105), section 65, for any reason, classification should be carried out as follows:-
(a) Subclauses with more general descriptions are to be preferred to those with the most explicit descriptions;
(b) in as much as this criterion is relevant, composite services, which are made up of a mixture of many services and cannot be categorised in the way described in subsection (a), should be classified as if they comprised of a service that gives them their fundamental character;
(c) service shall be categorised under the sub-clause that appears first among the sub-clauses that equally warrant attention where it cannot be classified in the way described in clause (a) or paragraph (b).
View more on section 80g of income tax act.