Service tax liability

Service tax will be applicable under place of provision of service tax rules 2012 for online information and database access or retrieval service. 

Originally posted by : Arun Kumar Singh
	Service tax will be applicable under place of provision of service tax rules 2012 for online information and database access or retrieval service.

Hello Mr Arun, Thanks for your views on this topic. If thats true I am in real trouble 

As our CA has asked us that we are not liable even to apply for the service tax number. Whereas the income goes above 10L but as this is foreign transaction we are not liable for that. 

I'll greatly appreciate if there is any such reference base that I can use to discuss with our CA. 

It will be a great help. 

Dear Mr. Ajay & Tarun,

I completely disagree with the views provided by Mr. Arun K. Singh.

Online database access and retrieval merely include such services which only facility mere facilitation of access or retrieval of a particular database; such as telephone directory or contact information etc. and therefore, can never be same as of the services provided by a call centre

Such back office or call centre services are not covered specifically under any of the specific rules of Place of Provision of Service Rules 2012. Hence, your services would be governed by the general / main rule 3 of the PPSR and hence, if the location of service recipient is outside India, the said service shall not be taxable.

In your case, the location of service recipient, I.e., from whom you are eligible to receive the payment and contractually obliged to make payment, is outside India. Hence, your services are not taxable and hence, no need to get registered.

Dear Mr Vikas,

Thank you very much for providing an answer to my query. I really appreciate your knowledge and professionalism. Thank you once again Sir.

I have two more queries and will be really grateful if you could kindly resolve these as well:-

1. Do I need an IEC (Import Export Code) or any other formalities in accordance with FERA/FEMA ?

2. Any other necessary license and documentation necessary as per Indian law since I will be receiving all the payments in foreign currency.

Thank you once again and looking forward to your kind reply.

Best Regards,

Tarun

Originally posted by : Vikas Vishwakarma
	Dear Mr. Ajay & Tarun, I completely disagree with the views provided by Mr. Arun K. Singh. Online database access and retrieval merely include such services which only facility mere facilitation of access or retrieval of a particular database; such as telephone directory or contact information etc. and therefore, can never be same as of the services provided by a call centre Such back office or call centre services are not covered specifically under any of the specific rules of Place of Provision of Service Rules 2012. Hence, your services would be governed by the general / main rule 3 of the PPSR and hence, if the location of service recipient is outside India, the said service shall not be taxable. In your case, the location of service recipient, I.e., from whom you are eligible to receive the payment and contractually obliged to make payment, is outside India. Hence, your services are not taxable and hence, no need to get registered.

Dear Mr Vikas, Thanks, its a great relieve. 

First of all let me thank both of you for showing such a kind gesture.

Secondly, I am afraid to tell you Mr. Tarun that I am not an expert in FEMA / FERA; however, I am pretty sure that You are neither required to obtain any IEC Registration, as the same is required for export or import of goods; or any other such license.

Service tax will not be applicable on website development and international telesales call services provided to non-taxable territory.

Dear Mr Arun,

Thank you for your reply.

Since my services will be provided to clients in European countries, so does it fall under non taxable territory?

Many thanks for your reply.

Best Regards,

Tarun

Yes, it will fall under the non-taxable territory.