Hi All,
What we do ?
We import services in form of ID & password from a company in Europe & sell in India via our e-commerce portal, the customer then uses this password to connect to the european comapnies server which are located in europe.
In a nutshell
We buy from europe & sell in India
Service Tax
1) The actual service is provided by the european comapny in Europe
So can argue we need not collect service tax from customers as the service provider in this bussiness is the European comapny and the actual service is provided by this company.
2) We help in trade by buying ID & password from the european comapny and sell it in India
This might be the reason why we need to pay the service tax as we provide our service, but as per this circular https://www.servicetax.gov.in/st50-2k2.htm there is no service tax applicable for E-Commerce websites under the category of "on line information and data base access and /or retrieval service
So my question do need to pay the service tax ??
Thanks in Advance, you help is appriciated.
CAclubindia
