22 April 2014
An India company engaged in Providing IT/Web Securities as follows:
Resources in India are accessing websites of Foreign companies through VPN(Virtual Private Network) or they are using remote access to monitor the websites of foreign Companies so as to prevent them from hackers and all.
Please tell me where is the Place of Provision of Services in this case. Please quote any case law or live case study so as to substantiate the same.
But still, a doubt is hovering around my mind. As per the definition from Service Tax Provision “online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;.
In this we are not providing mere data or information but we are performing some tests so as to check how much prone Clients/Customers' Database,websites etc are prone to hackers.
Should not Rule 4(a) be applied?? which says: The place of provision of following services shall be the location where the services are actually performed, namely:- (a) services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service: Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service.
So in our case we are performing tests on websites/database by remote access from India but these websites/database must be located on servers which are outside India.
CAclubindia
