service tax (reverse charge)

[Asked by Guest]

Dear Sir,

We (company) are planning to buy domain name name from a USA based company situated in USA only for $ 20000 (12 lacs Rs.). This payment will make in foreign currency. Whether this amount liable for Service Tax in India and if yes how much?

What will by the position if we buy this in personal name?

AI Summary

Reverse charge liability for cross-border domain purchases may require the recipient to pay service tax in India.
Cross-border purchases of domain names from foreign suppliers may attract Indian service tax under the reverse charge mechanism, obliging the Indian recipient-company or individual-to pay service tax on the foreign-currency consideration. A business that pays the tax may claim input tax credit. Taxability depends on the contractual characterization of the transaction; transfers involving intellectual property rights or different commercial structures may require separate analysis to determine whether the transaction is a taxable service.