Software user charges for using accounts, updation, storage space etc. will be covered under Rule 9 or 3 of POP services rules ?
Siddesh D Thakkar (CA, CS) (38 Points)
23 November 2016Software user charges for using accounts, updation, storage space etc. will be covered under Rule 9 or 3 of POP services rules ?
Sunil Kumar
(Indirect Taxation )
(1246 Points)
Replied 23 November 2016
Clause (b) of Rule 9 would be applicable. However due to recent amendment in OIDAR service the service would fall under Rule 3 and location of service reciver would be POP. The amendment would be effective from December 01, 2016.
To know about the amendment and its impact:
Must read Article: /articles/cross-border-online-services-a-drastic-amendment-28244.asp
Regards
Vibhukant
(CEO)
(26 Points)
Replied 25 November 2016
Dear sir,
We are domain & hosting reseller proprietorship firm.
Now one of our provider "Directi Web Technology Pvt. Ltd. which is an Indian entity"
will start charging Service Tax of 15% to us from 1st Dec.
And we are already charging 15% Service Tax from our client.
Can we get any relaxation or reverse charge benefit from Government?
- Another Hosting Server provider which is in USA. We will start paying Service Tax on
it from 1st Dec.
Can we get any relaxation or reverse charge benefit from Government?
Regards,
Vibhukant
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