Is domain names buy-sale comes under service tax?

Queries 1295 views 4 replies

Hello Everyone!

This is Bipin. I want to open a proprietor firm for domain names sale-purchase business. Mainly I buy-sell domains to and from outside India.

Please let me know whether

this business comes under service tax?

If i buy sell domains in India too, then which tax liability I have to face?

Is this business exempted in Income Tax also?

Please let me know your valuable response against my queries.

Thanks

Bipin

Replies (4)

Hi

This is Taxable Services.

When you Sell domain name in India you have to pay Service Tax on the same.

It is also Taxable income under Business & Profession Category.

 

Rgds//Vaibhav
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Thanks for your reply Vaibhav, 

Please let me know if I buy and sell, both from and to outside India, then also service tax will be charged? If so then after how much turnover, Service tax will ba applicable?

Looking to hear for your response as well.

Thanks

Sir, 

Thanks for your reply.

As far as 10 lakh turnover is considered to be included in service tax, 

Please let me know how it will count, by selling domains in india only or anywhere in World?

I mean to ask, does selling domains to outside india also include in my 10 lakh turnover?

Please reply. Its too confusing.

Thanks

Bipin

Thanks Vaibhav, 

So, it concludes as below for me:

1. Domain buy sale is taxable in India, comes under service tax, applicalbe after turnover of 10 lakh, condition, if buy & sale of domain names in India only to reach 10 lakh turnover.

2. Domain buy-sale outside India, doesn't comes in any tax (as far as Service tax is considered). Totally exempted.

Please let me know whether I conclude the discussion correctly or not?

Thanks


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