New Delhi: The revenue department has clarified that maintenance or repair or servicing of all computer software would be subject to service tax. The instructions have been issued following a Supreme Court ruling that such sale of computer software falls within the scope of sale of goods.

The SC had ruled that all the tests required "to satisfy the definition of goods are possible in the case of software and in computer software the intellectual property has been incorporated on media for the purpose of transfer. Software and media cannot be split up."

Resolving a dispute between Tata Consultancy Services and the Andhra Pradesh government, the court said sale of computer software, therefore, falls within the scope of sale of goods.

In case of branded software (canned software) sold off the shelf, the software is transferred in a medium and is sold as such. The apex court had said such cases fall within the definition of goods.