Query on Aggregator sevices

[Jahnavi Katukuri]

1. Whether online retail websites viz.Flipkart,Snap deal,Amazin.,are covered under the notification no:5/2015-ST dated 1/3/2015 ?
2. Whether these websites come under the purview of definition or requirements mentioned by the notification stated above ?

My contention is that :

As per the notification mentioned above

For this definition of aggregator, following conditions are relevant -

1. aggregator should be a person (as defined in section 65B (37) of Finance Act, 1994
2. Aggregator should own and manage a web based software application
3. It should enable a potential customer to connect with persons providing service of a particular kind (say, car rentals)
4. Such connecting shall be by means of the web application and a communication device (say, mobile)
5. Services should be provided under the brand name or trade name of the aggregator

As per the point 3 above the aggregator should enable the customer to connect with person providing service of any kind and not just trading of goods( which is the case with these online retail websites).

And with the above contention,I conclude that these retails websites are outside the purview of the notification stated above .

So,i humbly request the respected experts to help me in boosting my knowledge.

Thank you.

AI Summary

Aggregator definition determines service tax liability; marketplaces facilitating goods sales are treated as intermediaries, not aggregators.
An aggregator is a person owning and managing a web based application that enables a potential customer to connect with persons providing a particular kind of service under the aggregator's brand; such an aggregator is made the person liable to pay Service Tax for services involving an aggregator, with representative or appointed persons liable where the aggregator lacks presence, and Service Tax on such services is payable under reverse charge. By contrast, online marketplaces facilitating sale of goods ordinarily qualify as intermediaries rather than aggregators and are analysed under intermediary/place of provision rules.