Mumbai: The next time you download music or an e-book from an overseas site, or decide to buy some storage on a cloud from an overseas service provider, beware. Beginning December 1, a service tax<\/a> component of 15% will be added to your bill.<\/p>\n \n\tDomestic suppliers, say of films which can be downloaded by customers in India, already incur this service tax<\/a>. If the supplier was overseas, the tax didn't apply if the recipient of the service was an individual, government, local body or government agency based in India. From an industry perspective, there is now a level playing field between domestic and overseas suppliers.<\/p>\n The tax component is the result of amendments by the Central Board of Excise and Customs<\/a> in the 'Place of Provisions of Services Rules' (PPSR) for 'online information and database access or retrieval services'.<\/p>\n \n\tIn a surprise move, the Central Board of Excise and Customs<\/a>, through four notifications dated November 9, changed the definition of 'place of provision of service'.<\/p>\n \n\tOverseas suppliers incur the service tax only in respect of business-to-business (B2B) transactions, where the recipient was in India. Further, an exemption was available in such transactions if the supply was related to information databases (such as a subscription for international tax journals).<\/p>\n \n\tUntil now, if service providers were outside India, the place of provision of service was also outside India and no service tax was payable on such services supplied to individuals, government and government bodies in India. From December 1, the place of provision of a service will be the location of the service recipient.<\/p>\n \n\t\"Hence, say, all downloads in India will be subject to service tax. The amendments impact overseas companies providing various services like advertisements, web subscriptions, cloud hosting, music, e-books and gaming, to name a few. These services provided to governments and individuals were earlier not subject to service tax. They now become taxable and the overseas service provider or any intermediary or authorised representative will need to register in India and pay the service tax,\" says Sunil Gabhawalla, chartered accountant and indirect tax expert.<\/p>\n \n\tHe adds, \"Since the overseas service provider is likely to collect this tax from the end user who downloads these services, it would increase the cost for the consumer.\"<\/p>\n The definition of 'online information and database access or retrieval services' has also been changed. It now means services whose \"delivery is mediated by information technology over the internet<\/a> or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology\".<\/p>\n \n\tThe notification adds that this includes services such as internet<\/a> advertising, providing cloud services, e-books, movies, music, software and other intangibles via telecommunication networks or internet; providing data or information in electronic format via a computer network; online supply of digital content; digital data storage and online gaming. \"The definition is very extensive. Its scope has widely increased by including cloud services, online gaming and data storage, \" says Gabhawalla.<\/p>\n \n\tIndustry watchers say there will be practical difficulties in payment of such taxes if the overseas supplier has no presence in India. These notifications relate to service tax and is different from the equalisation levy of 6% introduced from June 1 for B2B online advertisements of Rs 1 lakh or more in a year, paid to overseas entities.<\/p>\n\n<\/body>","next_sibling":[{"msid":55383586,"title":"Telenor promotes inclusive growth through Project Vistaar in UP East Circle","entity_type":"ARTICLE","link":"\/news\/telenor-promotes-inclusive-growth-through-project-vistaar-in-up-east-circle\/55383586","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":55386262,"entity_type":"ARTICLE","title":"15% tax on downloads for foreign websites","synopsis":"The next time you download music or an e-book from an overseas site, or decide to buy some storage on a cloud from an overseas service provider, beware.","titleseo":"telecomnews\/15-tax-on-downloads-for-foreign-websites","status":"ACTIVE","authors":[{"author_name":"Lubna Kably","author_link":"\/author\/4757\/lubna-kably","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/4757.cms?width=100&height=100&hostid=268","author_additional":{"thumbsize":true,"msid":4757,"author_name":"Lubna Kably","author_seo_name":"Lubna-Kably","designation":"Senior Editor","agency":false}}],"Alttitle":{"minfo":""},"artag":"TNN","artdate":"2016-11-12 14:05:33","lastupd":"2016-11-12 14:12:25","breadcrumbTags":["Service tax","Internet","Central Board of Excise and Customs","donwloads","gabhawalla industry","Foregin Website"],"secinfo":{"seolocation":"telecomnews\/15-tax-on-downloads-for-foreign-websites"}}" data-authors="[" lubna kably"]" data-category-name="" data-category_id="" data-date="2016-11-12" data-index="article_1">
孟买:下次你从海外网站下载音乐或电子书,或者决定从海外购买一些存储在云服务提供者,要小心了。12月1日开始服务税组件将被添加到您的账单的15%。 国内供应商,说电影可以下载的客户在印度,已经产生服务税。如果供应商是海外,税收不适用如果收件人的服务是一个个体,当地政府或政府机构在印度。从行业的角度来看,目前国内和海外供应商之间的公平竞争。 税收组件是修正的结果中央委员会的特许权和习俗在规定的地方服务规则”(PPSR)的在线信息和数据库访问和检索服务。 让人惊讶的是,中央委员会的特许权和习俗通过四个通知日期为11月9日,改变了“提供服务的地方”的定义。 海外供应商的服务只有在尊重的企业对企业(B2B)交易征税,收件人在印度的地方。此外,豁免在此类交易如果提供有关信息的数据库(如国际税收期刊订阅)。 直到现在,如果服务提供者是印度以外,提供的服务也是印度以外的地方和没有支付服务税这样的服务提供给个人、政府和政府机构在印度。从12月1日的地方提供一个服务将服务接受者的位置。 “因此,说,印度所有的下载将受到服务税。修正案影响海外公司提供各种服务,如广告、网络订阅,云托管、音乐、电子书和游戏,等等。这些服务提供给政府和个人都早些时候不受服务税。现在他们成为应税和海外服务提供者或任何中介或授权代表将在印度需要注册并支付服务税,“苏尼尔•Gabhawalla说,注册会计师和间接税收专家。 他补充说,“由于海外服务提供者可能会收集这个税收从最终用户下载这些服务,它会增加消费者的成本。” 网上信息的定义和数据库访问或检索服务”也被改变了。现在意味着服务的“交付是由信息技术互联网或电子网络和呈现他们的本质提供自动化和涉及最少的人工干预,也不能保证在缺乏信息技术”。 通知补充说,这包括等服务互联网广告,提供云服务,电子书、电影、音乐、软件和其他无形资产通过电信网络或互联网;提供电子格式的数据或信息通过计算机网络;数字内容的在线供应;数字数据存储和在线游戏。”的定义是很广泛的。其范围广泛增加了包括云服务、在线游戏和数据存储,”Gabhawalla说。 行业观察人士表示,将在支付税收的实际困难如果海外供应商没有在印度的存在。这些通知与服务税和不同于平衡从6月1日征收6%的介绍了B2B在线广告1 Rs十万的或更多的一年,支付给海外实体。
Mumbai: The next time you download music or an e-book from an overseas site, or decide to buy some storage on a cloud from an overseas service provider, beware. Beginning December 1, a service tax<\/a> component of 15% will be added to your bill.<\/p>\n \n\tDomestic suppliers, say of films which can be downloaded by customers in India, already incur this service tax<\/a>. If the supplier was overseas, the tax didn't apply if the recipient of the service was an individual, government, local body or government agency based in India. From an industry perspective, there is now a level playing field between domestic and overseas suppliers.<\/p>\n The tax component is the result of amendments by the Central Board of Excise and Customs<\/a> in the 'Place of Provisions of Services Rules' (PPSR) for 'online information and database access or retrieval services'.<\/p>\n \n\tIn a surprise move, the Central Board of Excise and Customs<\/a>, through four notifications dated November 9, changed the definition of 'place of provision of service'.<\/p>\n \n\tOverseas suppliers incur the service tax only in respect of business-to-business (B2B) transactions, where the recipient was in India. Further, an exemption was available in such transactions if the supply was related to information databases (such as a subscription for international tax journals).<\/p>\n \n\tUntil now, if service providers were outside India, the place of provision of service was also outside India and no service tax was payable on such services supplied to individuals, government and government bodies in India. From December 1, the place of provision of a service will be the location of the service recipient.<\/p>\n \n\t\"Hence, say, all downloads in India will be subject to service tax. The amendments impact overseas companies providing various services like advertisements, web subscriptions, cloud hosting, music, e-books and gaming, to name a few. These services provided to governments and individuals were earlier not subject to service tax. They now become taxable and the overseas service provider or any intermediary or authorised representative will need to register in India and pay the service tax,\" says Sunil Gabhawalla, chartered accountant and indirect tax expert.<\/p>\n \n\tHe adds, \"Since the overseas service provider is likely to collect this tax from the end user who downloads these services, it would increase the cost for the consumer.\"<\/p>\n The definition of 'online information and database access or retrieval services' has also been changed. It now means services whose \"delivery is mediated by information technology over the internet<\/a> or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology\".<\/p>\n
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