Service Tax – By: – Mr. M. GOVINDARAJAN – Dated:- 13-5-2017 – Finance Act, 1994 Online information and database access or retrieval services was introduced in the service tax net with effect from 16.07.2001 vide notification No.4/2001-ST, dated 09.07.2001. Section 65(75) of the Finance Act, 1994 defines the said service as any service provided or to be provided to any person, by any person, in relation to on-line information and database access or retrieval or both in electronic form through computer network, in any manner. Indicate list of services The following are the services are covered under online information and database access or retrieval services – Website supply, web-hosting, distance maintenance of programmes and equipment; Website hosting and webpage hosting; automated, online and distance maintenance of programmes; remote systems administration; online data warehousing where specific data is stored and retrieved electronically; online supply of on-demand disc space. Sup
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updated stock market data, in real time); the provision of advertising space including banner ads on a website/web page; use of search engines and Internet directories. supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events; Accessing or downloading of music on to computers and mobile phones; accessing or downloading of jingles, excerpts, ringtones, or other sounds; accessing or downloading of films; downloading of games on to computers and mobile phones; accessing automated online games which are dependent on the Internet, or other similar electronic networks, where players are geographically remote from one another. supply of distance teaching. Automated distance teaching dependent on the Internet or similar electronic network to function and the supply of which requires limited or no human intervention, including virtual classrooms, except where the Internet o
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r 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 and includes electronic services such as,- advertising on the internet; providing cloud services; provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet; providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network; online supplies of digital content (movies, television shows, music, etc.); digital data storage; and online gaming. GST regime In GST regime online information and database access or retrieval services is included. Since it attracts integrated tax, the provisions relating to this services are found place in Integrated Goods and Services Tax Act, 2017. The provisions relating to this service are discussed in this article. Definition Section 2(17) of the Integrated Good
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ility of the taxable person. The place of supply in respect of online information and database access of retrieval services is dealt with in section 13(12) of IGST Act Section 13(12) provides that the place of supply of online information and database access or retrieval services shall be the location of the recipient of services. The explanation to this section provides that for the purposes of this sub-section, person receiving such services shall be deemed to be located in the taxable territory, if any two of the following non-contradictory conditions are satisfied, namely: the location of address presented by the recipient of services through internet is in the taxable territory; the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory; the billing address of the recipient of services is in the taxable territory; the internet protocol address of the de
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hysical presence or does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax. Payment of tax Section 14(1) provides that on supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services. in the case of supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non- taxable online recipient, an intermediary located in the non-taxable territory, who arranges or facilitates the supply of such services, shall be deemed to be the recipient of such services from the supplier of services in non-taxable territory an
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