TaxTMI 
TaxTMI 
Hello,
I am Domainer from India.
I buy-sell domain names from and to outside India.
will these transactions comes under any taxation liability?
Please help.
Is Domain name buy-sale outside India, taxable?
20 Oct 2012 
10 Replies 
17954 Views Asked by
Guest 
Service tax liability may arise for domain-name transactions when the transfer is characterised as a taxable service in the taxable territory.
Taxation depends on characterization and location: permanent transfers of domain-name rights may be treated as intangible-property sales, whereas facilitation of registration or change of registry particulars may be a taxable service. Service tax applies only when supplier or recipient are in the taxable territory under place-of-service rules; if treated as a service and above registration thresholds, registration and valuation rules may render the full consideration taxable. Income-tax treatment depends on whether domain trading is carried on as business (taxed as business income) or as capital disposals (capital gains). (AI Summary)
Taxation depends on characterization and location: permanent transfers of domain-name rights may be treated as intangible-property sales, whereas facilitation of registration or change of registry particulars may be a taxable service. Service tax applies only when supplier or recipient are in the taxable territory under place-of-service rules; if treated as a service and above registration thresholds, registration and valuation rules may render the full consideration taxable. Income-tax treatment depends on whether domain trading is carried on as business (taxed as business income) or as capital disposals (capital gains). (AI Summary)