Pleaseh help me

[Guest]

Hello,

I have some doubts regarding the service tax. I run a writing agency as partnership firm.I get academic works from USA and UK clients and I do it sent it in MS word format to the clients via mail or website. I receive the money through paypal which is in USD format then to my company bank account in INR format. I have consulted with some people and they said that it comes under the export of service which non taxable i think.

 

This is the article

http://convergenceservices.in/blog/corporate-blog/296-dont-pay-service-tax-on-export-of-services.html

 

In this article I could see that Online information and database access or retrieval services is service taxable. I am having doubt whether the service I provide comes under that or not. Should I pay the service tax? Then what kind of online services are not eligible for the service tax. Looking forward to your reply.

[YAGAY andSUN]

Dear Hazel,

According to the para 5.9.5 of the Taxation of Services: An Education Guide

What are “Online information and database access or retrieval services”?
“Online information and database access or retrieval services” are services in relation to online
information and database access or retrieval or both, in electronic form through computer
network, in any manner. Thus, these services are essentially delivered over the internet or an
electronic network which relies on the internet or similar network for their provision. The other
important feature of these services is that they are completely automated, and require minimal
human intervention.
Examples of such services are:-
i) online information generated automatically by software from specific data input by
the customer, such as web-based services providing trade statistics, legal and
financial data, matrimonial services, social networking sites;
ii) digitized content of books and other electronic publications, subscription of online
newspapers and journals, online news, flight information and weather reports;
iii) Web-based services providing access or download of digital content.
The following services will not be treated as “online information and database access or
retrieval services”:-
i) Sale or purchase of goods, articles etc over the internet;
ii) Telecommunication services provided over the internet, including fax, telephony,
audio conferencing, and videoconferencing;
iii) A service which is rendered over the internet, such as an architectural drawing, or
management consultancy through e-mail;
iv) Repair of software, or of hardware, through the internet, from a remote location;
v) Internet backbone services and internet access services.

Therefore, in our opinion, you are governed by Place of Provision of Services and do not fall under the category of online data retrieval services.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Guest]

hello sir, I am giving assignment writing service like resume writing. I got work mainly from USA and UK students. They will give some instruction about their assignment and their resume. I will prepare good resume for them and will send it on their personal mail id. They are giving money through paypal account and it will be credited my current account. They are paying dollers to ma paypal account and it will converted to inr then it will be credited ma current account. I am getting money by this form. I am exporting ma service to abroad students. Should i need to pay service tax? is this export of service right sir?

AI Summary

Export of services classification: writing and resume services are governed by place of provision, not online data access. The issue is classification: online information and database access or retrieval services are automated electronic deliveries requiring minimal human intervention, with examples including algorithmically generated data services and digitized subscription content. Exclusions include sale of goods online, internet telecommunication, remote repair, internet backbone/access, and human-delivered professional services sent over the internet. Writing and resume services produced on client instruction are not of the automated online database type and accordingly are governed by the place of provision of services rather than by the online information/database classification.