Please help me

Dear Hazelwelton,

It seems you are referring to the Place of provision of service rules where the place of provision of service is a place where service provider is situated. 

Analysing the provision........

The Definition of  “online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;

Further, the deifinition of phrase used above are

The definitions given in the Information Technology Act, 2000 are as follows:-

        "Data" means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalised manner, and is intended to be processed, is being processed or has been processed in a computer system or computer network, and may be in any form (including computer printouts, magnetic or optical storage media, punched cards, punched tapes) or stored internally in the memory of a computer.

        "Information" includes data, text, images, sound voice, codes, computer programmes, software and data bases or micro film or computer generated micro fiche.

        "Electronic form" with reference to information means any information generated, sent, received or stored in media, magnetic, optical computer memory, microfilm, computer generated microfiche or similar device.

        "Computer network" means the interconnection of one or more computers through-

1. 1. the use of satellite, microwave, terrestrial line or other communication media; and
   2. terminals or a complex consisting of two or more interconnected computers whether or nor the interconnection is continuously maintained.

Taking your case it seems that you are providing data using computer network which qualifies for  “online information and database access or retrieval services” however you need to still dig in to verify whether the academic work you provide qualifies for definition of "Data or Information". If yes, than service tax would be applicable.

hello sir, 

I am giving assignment writing service like resume writing. I got work mainly from USA and UK students. They will give some instruction about their assignment and their resume. I will prepare good resume for them and will send it on their personal mail id. They are giving money through paypal account and it will be credited my current account. They are paying dollers to ma paypal account and it will converted to inr then it will be credited ma current account. I am getting money by this form. I am exporting ma service to abroad students. Should i need to pay service tax? is this export of service right sir?

As per the meaning assigned to ‘online information and database access or retrieval services’, we may understand that it merely means accessing or retrieving certain information online. Such as job portals, or matrimony website. For e.g., the job seeking websites generally charge the employers for providing a list of database such as employees available in a particular industry for hiring purpose. Thus, the employers pay for ‘accessing a database (information)’ or ‘to retrieve information’ previously accessed by them.

I don’t find any reason for your service to fall under the aforesaid services, as you are not merely providing access to a database or information to the students. Instead, you are working on their details provided by them to write a specific resume. It’s a client specific work and thus, should not be considered as an online information and database access or retrieval service.

Further, let me tell a few things about Service tax.

Firstly, if you are providing services in a taxable territory (India, excluding Jammu and Kashmir), then such service is taxable.

Now to determine whether the services are provided in taxable territory, you refer to Place of Provision of Services Rules, 2012 (‘PPSR’). Under such rules, various specific rules are provided and if your service is not falling under any of the specific rules, the general rule (Rule 3) shall apply to your case.

Online information and database access or retrieval service falls under Rule 9, where the location of service provider is considered as the place of provision. However, as stated above, your services do not seem to fall under this service and apparently, it seems that it would not fall under any of the specific rules

Thus, your services should get covered under the general rule, where the location of service recipient determines the place of provision. Since, your students are located in UK and USA, the place of provision of service would be outside the taxable territory. Meaning, you have provided services outside India. Thus, no Service tax should be payable on such services.

Furthermore, to claim the services to be an ‘export of service’ certain conditions under Rule 6A of the Service Tax Rules, 1994, are required to be satisfied. Mainly, I would say you should receive the consideration in convertible foreign exchange, (which I believe you already are receiving though Paypal), and such consideration should be received within 6 months or the extended period allowed by RBI.

If you satisfy all the conditions under Rule 6A of the STR, your services should get qualified as export of service, which shall provide additional benefits. Meaning, whatever service tax you pay to your service providers on their invoices, should be eligible as refund from the Service tax department.

Hope the above clarifies.