Service tax liability


04 October 2016 Sir now whatsapp is charging rs 55 per year as a charge . Now the service provider ( whatsapp ) is located in a non taxable territory and we the service recievers are in a taxable territory . Consequently, the reverse charge mechanism is applicable here . My question is , in reality who bears the burden of paying the service tax liability to the govt ? Or are these social networking sites like facebook and whatsapp are exempted from service tax ?

04 October 2016 Social net working sites like facebook and whatsapp are not exempted from service tax, but as they are located outside the taxable territory the burden of payment to Govt is shifted to service receiver who will bear finally the service tax.
If they pay service tax to Govt they will charge you 55 plus service tax.

04 October 2016 Sir but in reality we are not paying any service tax to the govt for using whatsapp . But so far , why we have not recieved any notice from the service tax authorities for tax payment ?

04 October 2016 Being a small amount dept will not take any action.

04 October 2016 Thank u sir


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