Service tax Applicability for Online Data Information Service(Web Access) received from a Foriegn Country

[A Wilson]

Dear Experts

Service tax Applicability for Online Data Information Service(Web Access) received from a Foriegn Country with respect to Rule 9 of place of provision of services 

[YAGAY andSUN]

Yes sir, you are liable to pay the tax under Rule 9 of POPs as you are falling under Online information and database access or retrival services.

[A Wilson]

Dear Sir,

Rule 9 of Place of Provision of Rules excluded the Online Data Information Servicee(Web Access) received from a Foriegn Country from the taxable services, So this service is not liable to service tax as per Rule 9 of PPR Rules. since the place of provision for this specified service is  the location of service provider i.e., services from non-taxable territory. As per sec 66B, taxable of service is in taxable territory.

Pls give your inputs on this.

[YAGAY andSUN]

Sorry due to oversight I have read the service provider as service recipient. My mistake.

AI Summary

Place of Provision of Services: online information services supplied from a non taxable provider location fall outside taxable territory. Applicability of service tax for online information and database access services depends on the place of provision; when such services are supplied from a non taxable territory, the place of provision is the service provider's location outside the taxable territory, and the service is therefore not within the taxable territory for service tax purposes.