Information technology software services range

Software for information technology (IT) includes:-

(1) The creation of software through research, analysis, design, and programming.

(2) Services related to IT software adaptation, improvement, installation, and similar tasks.

(3) Giving advice and support on issues with IT software, for example:-

     (a) conducting feasibility analyses for system installation,

     (b) providing guidelines for a database design,

     (c) Offering direction and support during a new system's startup period,

  (d) Providing guidelines for database security or offering guidance on proprietary IT software.

(4) Obtaining the right to utilise:-

  (a) IT software with the ability to be used commercially, including the right to copy, transfer, and sell,

  (b) Software elements used in the development of and incorporation into other IT software products,

  (c) IT software that is electronically delivered.

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Software is made up of coded data and a transport medium like a CD or floppy.

"Regular software" and "special software" are the two categories of software.

Mass-market, off-the-shelf normalised software is frequently offered for sale at retail locations. Custom software is defined as software that has been developed particularly to satisfy a customer's demands.

Software that is packaged and sold off the shelf and is classified as a product is subject to an 8% excise tax. It was raised from 8% to 12% in this budget by notice No. 12/2008 C.E., dated 1.3.2008. The following taxable services include a number of IT services and IT-enabled services (ITeS) that are already subject to service tax:-

(1) The service of a consulting engineer is counsel, consulting, or technical support in the field of hardware engineering.

(2) Purchasing and managing information technology resources is a management or business consultant's service.

(3) Management, maintenance, or repair service-maintenance of hardware and software, both packaged and customised.

(4) "Provision and transmission of information and data processing" is part of banking and other financial services.

(5) Business support services, including a range of outsourced IT and IT-enabled services.

(6) Business auxiliary services, such as call centres, are services rendered on behalf of the customer.

Full details on 80g of income tax act.