TMI BlogService tax on domain & hosting under oidar new rules.X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir, We are domain hosting reseller proprietorship firm. Now one of our provider Directi Web Technology Pvt. Ltd. which is an Indian entity will start charging Service Tax of 15% to us from 1st Dec. - And we are already charging 15% Service Tax from our client. Can we get any relaxation or reverse charge benefit from Government? - Another Hosting Server provider which is in USA. We wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll start paying Service Tax on it from 1st Dec. Can we get any relaxation or reverse charge benefit from Government? Regards, Vibhukant - Reply By Rajagopalan Ranganathan - The Reply = Sir, Query: -1: You cannot get any relaxation. Only facility available is availability of credit of service tax paid by you to Directi Web Technology Pvt. Ltd. under Cenvat Credit Rules, 2004 and you can ut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilize the same for discharging service tax liability by you on the output service provided by you. Query: -2: If the service provided by Hosting Server provider which is in USA and you use it for commerce, industry or any other business or profession, then it will be treated as import of service and you have to pay service tax @15% under reverse charge mechanism. Again you can take credit of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax paid on REM and utilize the same for payment of service tax on any output service in which the said service is used as input service. - Reply By Vibhukant Sharma - The Reply = Dear Rajagopalan Ranganathan sir, - First of all thanks for speedy reply. - Will it be 100% adjustment in both the cases? Regards, Vibhukant - Reply By Ganeshan Kalyani - The Reply = Yes full credit is elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible . - Reply By Vibhukant Sharma - The Reply = Thanks once again to both of you and taxmanagementindia.com. - Mr. Rajagopalan Ranganathan - Mr. Ganeshan Kalyani Last Question : Can any CA can handle both the adjustments easily? - Reply By Vibhukant Sharma - The Reply = Dear sir, We do have some Foreign hosting clients. Is Service Tax chargeable to them under New OIDAR rules? Or we have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to provide any details to Govt. about this foreign payment received. Regards, Vibhukant - Reply By Ganeshan Kalyani - The Reply = If you are providing service to your Foreign clients then the service would amount to export of service . And service tax is not applicable on export of service. Thanks . - Reply By Vibhukant Sharma - The Reply = Dear sir, We have applied as Service Provider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Recipient in Service Tax ST1 Form. Do we have to apply for Input Service Distributor also to avail Cenvat Credit or RCM ? Thanks, Vibhukant - Service tax on domain & hosting under oidar new rules. - Query Started By: - Vibhukant Sharma Dated:- 25-11-2016 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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