Renting of servers

Our company which is an e-commerce portal hires servers from foreign companies. Are we required to pay service tax under reverse charge mechanism for such payments?

As only renting of immovable property is covered under the declared services - Section 66E, is renting of servers covered under the definition of service itself?

Thanks in advance

Replies (3)

Section 65B(44) of the Finance Act,1994 defines Service as:

  • any activity carried out by a person for another for consideration, and
  • includes a declared service,

 Thus the service of renting of servers is covered under the definition.

Since the said service is neither covered under Negative list nor under exemption Notfn, therefore, it appears that,  you are required to pay service tax under reverse charge mechanism for such payments.

 

Mr. Irshaad, 

Thanks for your reply. 

Renting of immovable property but for the declared service definition would not be considered as a service.

In the absence of a inclusion in declared service, can we not assume that it is not covered under the definition of service. 

I mean renting of servers

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
11 August 2026
COMPLIANCE EXECUTIVE

YMW COMPLIANCE SERVICES LLP

Others

CA Final

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details