Indian Data Hosting Services to Overseas Cloud Providers Clarified as Export; Not Intermediary or Property-Linked.

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Full Text of the Document

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....The circular clarifies the place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. It addresses three issues: whether the data hosting service provider qualifies as an intermediary, whether the services relate to goods made available by the recipient, and whether they directly relate to immovable property. The key points are: 1) Data hosting service providers do not qualify as intermediaries facilitating supply between cloud providers and end-users, as they provide services on a principal-to-principal basis. Hence, place of supply cannot be determined u/s 13(8)(b) of IGST Act. 2) Data hosting services cannot be considered provided in relation to goods made available by cl.........