LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Service tax on cloud storage

Rahul Panwar (nothing) (123 Points)

08 June 2016

if a india based pvt company is taking service of Cloud storage from foreign party. what will the POP of the service.

Reply
Follow
Share

6 Replies

Chirag Parmar (Service) (65 Points)
Replied 08 June 2016

Rule 9 of Place of Provision of Service Rules, 2012 provides that place of provision of service would be location of service provider in case of online information and database access or retrieval services.

However, in the instant case you are taking service of cloud storage from foreign party which is not get covered under Rule 9 as it provides for online information and database access or retrieval services which is different than storage of data.

Hence, the default rule i.e. Rule 3 would apply and place of provision would be location of service receiver.

Rahul Panwar (nothing) (123 Points)
Replied 08 June 2016

I read the Rule 9 of POP it was mentioned that if service is related to online info access, database access then Rule 9 would be applicable and POP will be location of SP i.e outside india. I m confused about whether online info access or database access or retrival service includes online storage as we are here paying for data storage in cloud , not for retrival

Chirag Parmar (Service) (65 Points)
Replied 08 June 2016

Online information and database access or retrieval services doesn't cover the cloud storage service.

Example- access to trade statistics, legal or financial data, matrimonial service etc.

Rahul Panwar (nothing) (123 Points)
Replied 08 June 2016

thnku chirag might be you are one think.that is , in the cloud storage service we pay, not only for online storage, but also accessing the stored data. so does it.not cover under rule 9. without storage we cannot.access the data.. primary purpose if.storage is to.retrieve the data online.at any time from.any place.. so we are taking service for.both storing & retrieving the data

plz give on this

Chirag Parmar (Service) (65 Points)
Replied 08 June 2016

In Online information and database access or retrieval services, you access or retrieve the data belongs to service provider while in case of cloud storage you access the data belongs to you only. Cloud storage is also service but for the purpose of POP it would not get cover under rule 9 within ambit of Online information and database access or retrieval services.

karan jit singh (Consultant) (1299 Points)
Replied 10 June 2016

Completely disagree with chirag's viepoint. If we are paying to cloud service provider he is providing the service of not only storage but providing you with all essential applications to access and retrieve. If you storing any info on cloud its simply meant for retrieval in future. Dont confuse yourself with this. As essence of rule 9 is obviously applicable here.

Regards

Karanjit Singh | +91-7503588224