Service tax on domain & hosting under oidar new rules.

[Guest]

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

AI Summary

Domain Reseller Firm Explores Service Tax Implications Under OIDAR Rules; Cenvat Credit and Reverse Charge Explained A domain and hosting reseller firm inquires about service tax implications under new OIDAR rules. They face a 15% service tax from an Indian provider and question the possibility of tax relaxation or reverse charge benefits. An expert clarifies that no relaxation is available, but Cenvat Credit can be utilized for tax liabilities. For services imported from a US provider, the tax is payable under the reverse charge mechanism, with credit available. The firm also seeks clarification on service tax applicability for foreign clients, learning that exports are exempt. They inquire about registration requirements for availing Cenvat Credit or RCM benefits.