Service tax on domain & hosting under oidar new rules.

[Asked by 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

Reverse charge on imported hosting services applies, with tax payable under reverse charge and eligible for input credit.
Payments to an Indian domain/hosting supplier are taxable but eligible for cenvat credit under the Cenvat Credit Rules to offset the reseller's service tax liability; payments to foreign hosting providers are treated as import of service and attract tax under the reverse charge mechanism, with such tax also eligible for credit. Services exported to foreign clients are not subject to service tax. The discussion notes registration as service provider/recipient and queries the need for Input Service Distributor status, while emphasising credit availability rather than exemption.