Hello
I am looking for information about GST on Webhosting and TDS Payments. I have been searching for this from last 2 months but haven’t got any relevant information.
TDS Problem:
My CA Says that for Private Limited Companies:
Every hosting payment we make we have to deduct TDS @ 2% and for this we need PAN Number of the Biller. For any payment made to a biller with No PAN Number we have to deposit TDS @ 20% (we have to bear this)
Total Billing in a year is 3 Lakhs:
We have dedicated servers from Hostgator USA and they have not registered for INDIAN PAN Number.
GST Problem:
Since July 1 Hostgator is adding 18% as “India Goods and Services Tax” previously dedicated server billing price was $174 per month and now after 18% tax is $205.32 (Total $31.32 added as GST)
Hostgaot is showing following Service Tax Registration Number NTT0581USASR037 on Invoice
Another thing is on Hostgator's Invoice the following line is written: "B2B customers shall be liable to pay GST under the reverse charge mechanism." - Is this means I have to pay the GST suo-moto? Then Hostgaot cannot charge 18% right?
We have asked the same to Hostgator support and they said:
“For the purposes of taxes, you will want to use our Service Tax Registration Number, which is as follows: NTT0581USASR037”
Note:
We do not want to move our server to Hostgator India or any other hosting providers because we are fully satisfied with hostgator support since few years…
I will be very thankful for any information on tihs…
Thank you!
CAclubindia
