Taxability of Repair or maintenance of computer software under the category of “ maintenance or repair services”. - Service Tax - F.No. 256/1/2006-CX.4

Taxability of Repair or maintenance of computer software under the category of " maintenance or repair services". F.No. 256/1/2006-CX.4 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs New Delhi , March 7, 2006 Subject:- Taxability of Repair or maintenance of computer software under the category of " maintenance or repair services". It may be recalled that Notification No. 20/2003-ST dated 21st Aug., 2003 exempting taxable service in relation to maintenance or repair of computers, computer systems or computer peripherals, was withdrawn vide Notification No. 7/2004-ST dated 9th July, 2004 . Subsequently, vide circular F.No. 81/2/2005-ST dated 7/10/05 it was clarified that maintenance or repair or servicing of software is leviable to service tax. This circular was issued in suppression of all earlier clarification / circular issued on the subject. Doubts have been raised regarding the date of applicability of service tax on maintenance or repair of computer software. The issue was discussed by the Central Board of Excise Customs. In this regard, I am directed to inform that service tax is leviable from 9-07-04, i.e. the day Notification No. 20/2003-ST was rescinded. Therefore, all efforts should be made to collect the service tax not paid by such service providers. ( GAUTAM BHATTACHARYA) COMMISSIONER (ST)