TaxTMI 
TaxTMI 
TaxTMI 
Service tax on domain & hosting under oidar new rules.
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....ervice tax on domain & hosting under oidar new rules.<br> Query (Issue) Started By: - Vibhukant Sharma Dated:- 25-11-2016 Last Reply Date:- 6-12-2016 Service Tax<br>Got 7 Replies<br>Service Tax<br>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 1s....
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....t 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 Reply By Rajagopalan Ranganathan: The Reply: Sir, Query: -1: Yo....
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....u cannot get any relaxation. Only facility available is availability of credit of service tax paid by you to Directi Web Technology Pvt. Ltd. under Cenvat Credit Rules, 2004 and you can utilize the same for discharging service tax liability by you on the output service provided by you. Query: -2: If the service provided by Hosting Server provider which is in USA and you use it for commerce, indus....
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....try or any other business or profession, then it will be treated as import of service and you have to pay service tax @15% under reverse charge mechanism. Again you can take credit of service tax paid on REM and utilize the same for payment of service tax on any output service in which the said service is used as input service. Reply By Vibhukant Sharma: The Reply: Dear Rajagopalan Ranganathan s....
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....ir, - First of all thanks for speedy reply. - Will it be 100% adjustment in both the cases? Regards, Vibhukant Reply By Ganeshan Kalyani: The Reply: Yes full credit is eligible . Reply By Vibhukant Sharma: The Reply: Thanks once again to both of you and TaxTMI.Com - Mr. Rajagopalan Ranganathan - Mr. Ganeshan Kalyani Last Question : Can any CA can handle both the adjustments easily?....
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.... Reply By Vibhukant Sharma: The Reply: Dear sir, We do have some Foreign hosting clients. Is Service Tax chargeable to them under New OIDAR rules? Or we have to provide any details to Govt. about this foreign payment received. Regards, Vibhukant Reply By Ganeshan Kalyani: The Reply: If you are providing service to your Foreign clients then the service would amount to export of service . And ....
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....service tax is not applicable on export of service. Thanks . Reply By Vibhukant Sharma: The Reply: Dear sir, We have applied as Service Provider & Service Recipient in Service Tax ST1 Form. Do we have to apply for "Input Service Distributor" also to avail "Cenvat Credit" or "RCM" ? Thanks, Vibhukant<br> Discussion Forum - Knowledge Sharing ....