Monday, January 2, 2017

U-Turn in Place of Provision of Online Information and Database Access or Retrieval Services

U-Turn in Place of Provision of Online Information and Database Access or Retrieval Services

CA. Ashish Vaish
(The author is a member of the Institute who may be contacted at ashish.vh@gmail.com.)

Place of Provision in case of Online Information and data base access or retrieval services has been shifted from the ‘location of the service provider’ to the ‘location of service receiver’. All such services received in India from outside India shall now be liable to service tax. The meaning of such services expanded to include all services whose delivery is mediated through internet and the nature of which renders their supply essentially automated and involving minimum human intervention. The definition of online services has been amended and Place of Provision in case of online services has been reversed resulting in taxation of services in India even if these are coming non-taxable territory.


Regards

Pralhad Jadhav

Senior Manager @ Library
Khaitan & Co                                                                    


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