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(Tax on Reverse Charge Notification No. 30/2012 as amended by Notification 7/2015)

In the budget 2015, An aggregator has been made a person liable to pay service tax in case service is provided under the aggregator model (i.e. if service is provided using the brand name or trade name of aggregator in any manner.)

Aggregator means,

a. A Person,
b. Who owns and manages a Web-based software application, and
c. By means of the application and a communication device,
d. Enable a potential customer to connect with persons providing
e. Service of a particular kind,
f. Under the brand name or trade name of the Aggregator.


a. A Taxi services are directly provided by the taxi driver to the customer,
b. However, customer receives the service under the brand name of Meeru web site.
c. In such case, Meeru is as the Aggregator.

Liability of Service Tax

a. The Liability to discharge the service tax is on the aggregator under reverse charge.
b. Hence any e-commerce transaction under aggregator model is taxable.


Location of the Aggregator/Agent

Person liable to pay Service  Tax


If the Aggregator located in India.

The Aggregator.


If the Aggregator does not have the physical presence in the Taxable territory.

The Person (Agent) representing the aggregator.


If the Aggregator does not either have physical presence or representative in the taxable territory.

The Aggregator shall appoint a person for paying Service Tax.


i. The New service tax rate will apply to online aggregators, deal sites and classified players such as Flipkaart, Amazon, Quikr, Food panda, OLX, Housing etc.

ii. 100 % tax shall be payable by the aggregator.


Published by

CA Vishal Bindal
(R.K. Associates & Hoteliers Pvt. Ltd.)
Category Service Tax   Report

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