Login | Register Now | Contact Us   
 

CGST Act IGST Act UTGST Act GST (Compensation to the States) Act Addendum to the GST Rate Schedule - 03.06.2017 101st Constitution Amendment Act, 2016 Addendum to the GST Rate Schedule - 18.05.2017 GST Compensation Cess Rates Decided in the GST Council Meeting held on 18.05.2017 Chapter Wise Rate wise GST Schedule - 03.06.2017 Chapter wise GST Rate Schedule for Goods Decided in the GST Council Meeting held on 18.05.2017 Revised Threshold for Composition Scheme - 11.06.2017 IGST Exemptions Approved by the GST Council - 11.06.2017 GST Rates Approved by the GST Council - 11.06.2017 Service Tax Exemptions in GST IGST Exemption, Concession List - 03.06.2017 Composition - Rules Valuation Rules ITC - Rules Invoice, Debit & Credit Notes - Rules Payment - Rules Refund - Rules Registration - Rules Return- Rules Transition Rules Proposed CTD Document Accounts and Record Rules GST rate Schedule for Services Decisions Taken by the GST Council in the 16th Meeting - 11.06.2017 List of Services under Reverse Charge Classification Scheme for Services Under GST
Coverage of Service Tax Widened For OIDAR Services
15 February, 2017 Ahemedabad :
Coverage of Service Tax Widened For OIDAR Services

World is getting smaller with the use and access of internet and with that the nature of activities to a larger extent have transformed to online. In line with recent developments in technology the net of Service Tax has been expanded in order to cover online transactions within its leviability.

The scope of Online Information and Database Access or Retrieval (OIDAR) services has been widened vide amendment to Service Tax Rules, 1994 with effect from 01.12.2016, to mean services whose delivery is mediated by information technology over the internet 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. The scope of OIDAR services also 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. OIDAR services will also take into account providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network, online supplies of digital content like movies, television shows, music, etc., digital data storage and online gaming.

The rule to determine the place of provision of service has been amended, and the OIDAR services are omitted from Rule 9 of POPS Rules, 2012 and they are now governed as per Rule 3 of POPS. Accordingly, the place of provision of service will be location of the service receiver in case of OIDAR services with effect from 01.12.2016. However, if the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service, except in case of OIDAR services.

If the OIDAR service provider is located in taxable territory such service provider will continue to be liable to pay service tax. With regard to expansion of scope of OIDAR services under Service Tax net, when service provided by person located in non-taxable territory to a non-assessee online recipient, the representative appointed by the service provider in taxable territory will pay tax and in case if no representative or no physical presence in taxable territory of the service provider, he himself or through an agent appointed by him for the purpose of paying Service Tax will bear the liability.

When OIDAR services are provided by any person located in a non-taxable territory to any person located in the taxable territory but other than non-assesse online recipient, liability will be on such person receiving services. If an intermediary located in the non-taxable territory including an electronic platform, a broker, an agent or any other person, by whatever name called, who arranges or facilitates provision of such service but does not provides the main service on his account shall be deemed to be receiving such services from the service provider located in non-taxable territory and providing such services to the non-assesse online recipient. Thereby the Government has stretched the scope of Service Tax to cover of OIDAR services to cover even the services received from a non-taxable territory.

audemars piguet replica watches fakeapwatch.com

Courtesy: From the desk of Monish Bhalla, Founder, www.servicetaxonline.com
Related Contents
 
 

www.centralexciseonline.com

 


www.taxolegal.com


Page copy protected against web site content infringement by Copyscape


www.customsindiaonline.com
Home | Mission | Contact Us | Acknowledgements © 2009 Copyrights, All Rights Reserved. 
Disclaimer Though all efforts have been made to reproduce the order and other contents correctly, the access and circulation is subject to the condition that EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone due to any mistake/error/omissions. Mr Certify site is constantly updated and any or all of the contents are liable to be modified, altered, deleted or replaced. EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone whether directly or indirectly  due to any modification , alteration, addition, deletion or replacement of any of the contents.

Copyright: Reproduction of news articles, photos, or any other content in whole or in part in any form or medium without express written permission of  EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is prohibited.Do not copy contents of this site. All pages are protected by COPYSCAPE. Plagiarism will be detected by COPYSCAPE.