GST (GOODS AND SERVICES TAX)

Similar documents
GST Bytes.. Series 5. An Educational Series for building GST awareness

GOODS AND SERVICES TAX PLACE & TIME OF SUPPLY PROVISIONS M. VINOD KUMAR I.R.S

Place of Supply Vs Place of Provision of Service

GST GOODS & SERVICE TAX = ONE NATION ONE TAX. ASHOK CHANDAK

About e-commerce, software configuration overviews and tax are you really adding value to your client? Helena Strauss

GST PLACE AND TIME OF SUPPLY. K. VAITHEESWARAN ADVOCATE CHENNAI

Place of Supply of Goods or Services or Both

Place of Supply. Lets' Connect - GST India S B GABHAWALLA & CO Chartered Accountants 1

ROYAL MALAYSIAN CUSTOMS GOODS AND SERVICES TAX GUIDE ON ADVERTISING SERVICES

Concept of Inter and Intra state supply Place of supply of goods and services

Place of Supply of Goods or Services or Both. Place of supply of goods other than supply of goods imported into, or exported from India (Section 10)

Rule# Rule Title Form# Provision Bizsol Analysis

Invoice under GST. Abhay M Sharma & Co. 302/1 Ujjaval Complex, Nr. Akota Stadium, Akota, Vadodara

GST in India. The inevitable

Chapter- TAX INVOICE, CREDIT AND DEBIT NOTES

Place of Supply of Goods or Services or Both. 5 Day Refresh Course on GST Organised By WIRC of ICAI

Subject: Refund of IGST on Export Invoice mis-match Cases Alternative Mechanism with Officer Interface - reg.


GST- PLACE OF SUPPLY

Portugal among the EU countries with the highest rate of mobile broadband usage by enterprises

pem.co.uk Making Tax Digital for VAT

Meaning and Definition

Guidance on who needs to notify

1. Meaning of E-way bill-

Case study 4: Communications services, Computer and Information Services Royalties and license fees

Chapter by Prentice Hall

REGULATIONS GOVERNING SERVICES PROVIDED BY ELECTRONIC MEANS at the Hotel Gołębiewski in Białystok, within the Internet service:

Internet Tariff in Euros

Place of Supply and Time of Supply

GST Guidance Note - 4 Place of Supply

quick smart telephone directory We are the o n ly true local business and resident directory Simply reserve your advertising space by 19 October 2013

King County Library System 960 Newport Way NW Issaquah, WA February 15, 2011 REQUEST FOR QUALIFICATIONS FOR

E-Way bill. Microsoft Dynamics AX This document will help you learn how to extend tax configurations to meet the E-Way bill requirement.

GEARED UP FOR BILLING UNDER GST

08 NOVEMBER PURPOSE

Communications Services Supplier Registration

GOODS AND SERVICES TAX goods-determination of intra state or interstate supply Authors

Frequently Asked Questions (FAQs) on Electronic Way Bill (E-Way Bill)

Immediate Supply of Information on VAT. Tax Management Department

Tax Invoice (Format 1)

Place of Supply : Relevance

GST AND IMPACT ON E-COMMERCE. Cyril Amarchand Mangaldas

Management Information Systems MANAGING THE DIGITAL FIRM, 12 TH EDITION GLOBAL EDITION

HKT Financial Services (IA) Limited Privacy Statement

E-Way bill. Microsoft Dynamics AX This document will help you learn how to extend tax configurations to meet the E-Way bill requirement.

n Business Paper Proposal Due 1/29 n Database Assignment 1 Due 2/3 n Reading for Thursday n Messerschmitt Ch 4

Data Protection/ Information Security Policy

Northcliffe Surf Life Saving Supporters Association Inc. Privacy Policy

PRODUCT DESCRIPTIONS AND METRICS

Privacy Policy of Townsville Motor Boat & Yacht Club Limited - Liquor Licence Number 84145

Privacy Policy of Brothers Leagues Club Ipswich Inc. Community Club Licence No

Nationwide roll-out of e- way bill system for inter-state movement of goods 1 st February 2018

QUESTION WE VE BEEN ASKED


EUROPEAN COMMISSION DIRECTORATE-GENERAL TAXATION AND CUSTOMS UNION Indirect Taxation and Tax Administration Value Added Tax VEG N O 067

SIKKIM EXTRA ORDINARY PUBLISHED BY AUTHORITY

GUIDE ON : ADVERTISING SERVICES

TERMS OF USE OF THE SERVICE OF MOBILE PAYMENTS FOR PARKING. 2. What is the service of mobile payments for parking?

Business Setup General requirements & Price in Fujairah Creative City

vinexpohongkong May 2018 vinexpohongkong.com ADVERTISING OPPORTUNITIES

IAB internet advertising revenue report

By CA Vasant K Bhat

VICTORIAN CHAMBER OF COMMERCE AND INDUSTRY EXPLANATORY NOTES

Advertising. Nontaxable advertising services. Creating advertising

TERMS AND CONDITIONS

REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2018 BY S&P DOW JONES INDICES AND MSCI INC.

Making Tax Digital for VAT for charities

INVOICE UNDER GST CA. PAYAL VASANI

On-Demand Solution Planning Guide

Backbone Drums - Daily and Weekly Accounts Records

APS Bank plc Data Privacy Policy

General Terms and Conditions

Art of Cool Text To Win OFFICIAL RULES NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE A PARTICIPANT S CHANCES OF WINNING.

Chapter 4: E Business Revenue Models. Web Catalog Revenue Models. Adapted from traditional catalog based model

PLACE OF SUPPLY - GST

UEFA National Associations Match Video Distribution and Storage

Value, Engagement and Trust in the era of Social Entertainment

EDUCATION SECTOR ACTIVITIES

Guidance for NAI Members: Viewed Content Advertising

Carbon County Visitors Council Event Advertising & Marketing Grant Application, Guidelines, & Instructions

Rize Communications Business Advertising & Marketing

Impact of GST on E- Commerce

63% of enterprises have a website

BAYER AUSTRALIA POLICY PRIVACY

SAFECAP PRIVACY POLICY STATEMENT

An introduction to MediaSales Traffic

E-WAY BILL UNDER GST ACT

GST IN INDIA INVOICE & PAYMENTS

Digital Advertising Alliance of Canada. Application of Self-Regulatory Principles to the Mobile Environment

Making Tax Digital for VAT. Guide to product changes Opera 3 (2.60) Scheduler (2.20)

Advertising 133. Nontaxable advertising services

TERMS AND CONDITIONS OF SALE AND BOOKING AT THE WROCŁAW OPERA

E-way Bill. Chapter XXII. FAQ s. Q1. Under what all cases a registered person has to generate e-way bill?

Public Revenue Department. Importers and Exporters

UIC NEWS WEEKLY ADVERTISING AGREEMENT

E- Publishing: Successful e-commerce efforts to e- publishing online newspapers and independent and independent publication through the internet.

Policy Guidelines and Criteria for Empanelment and Rate Fixation for Central Govt Advertisements on Websites

Information Requirements in the Consumer Rights Directive Proposal and in Other Directives

Transcription:

What is OIDAR? Online Information Database Access and Retrieval services (OIDAR) is a category of services provided through the medium of internet and received by the recipient online without having any physical interface with the supplier of such services. E.g. download of an e-book online for a payment would amount to receipt of OIDAR services by the consumer. The IGST Act defines OIDAR as services whose delivery is mediated by over the internet or an electronic network and the nature of which renders their supply essentially automated involving minimal human intervention. These include electronic services such as: (i) (ii) (iii) (iv) (v) (vi) Advertising on the internet Providing cloud services Provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet Providing data or, retrievable or otherwise, to any person in electronic form through a computer network Online supplies of digital content (movies, television shows, music and the like) Digital data storage (vii) Online gaming Why OIDAR is requires a treatment different from other services? The nature of OIDAR services are such that it can be provided online from a remote location outside the taxable territory. A similar service provided by an Indian Provider, from within the taxable territory, to recipients in India would be taxable. Further, such services received by a registered entity in India would also be taxable under reverse charge. The overseas suppliers of such services would have an unfair tax advantage should the services provided by them be left out of the tax net. At the same time, since the service provider is located overseas and may not be having a presence in India, the compliance verification mechanism become difficult.it is under such circumstances, that the government has plans to come out with a simplified scheme of registration for such service providers located outside India. Directorate General of Taxpayer s CENTRAL BOARD OF EXCISE & CUSTOMS www.cbec.gov.in

How would OIDAR services be taxable under GST? For any supply to be taxable under GST, the place of supply in respect of the subject supply should be in India. In case, both the supplier of OIDAR and the recipient of such service is in India, the place of supply would be the location of the recipient of service i.e. it would be governed by the default place of supply rules. What happens in cases where the supplier of service is located outside India and the recipient is located in India? In such cases also, the place of supply would be India and the transaction would be amenable to tax. Who will be responsible for paying the tax? In cases where the supplier of such service is located outside India and the recipient is a business entity (registered person) located in India, the reverse charge mechanism would get triggered and the recipient in India (registered entity under GST) will be liable to pay GST under reverse charge and undertake necessary compliances. Now what happens if the supplier is located outside India and the recipient in India is an individual consumer? In such cases also, the place of supply would be India and the transaction is amenable to levy of GST. But the problem is, how would such tax be collected? It would be impractical to ask the individual in India to register and undertake the necessary compliances under GST for a one off purchase on the internet. For such cases the IGST Act provides that on supply of online and database access or retrieval services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services. Now if an intermediary located outside India arranges or facilitates supply of such service to a non-taxable online recipient in India, the intermediary would be treated as the supplier of the said service, except when the intermediary satisfies the following conditions: (a) The invoice or customer s bill or receipt issued by such intermediary taking part in the supply clearly identifies the service in question and its supplier in non-taxable territory (b) The intermediary involved in the supply does not authorise the charge to the customer or take part in its charge. This means that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services (c) The intermediary involved in the supply does not authorise delivery (d) The general terms and conditions of the supply are not set by the intermediary involved in the supply but by the supplier of services How would the entity located outside India comply with the responsibilities entrusted under GST? The supplier (or intermediary) of online and database access or retrieval services shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme in Form GST REG-10. The supplier shall take registration at Principal Commissioner of Central Tax, Bengaluru West who has been the designated for grant registration in such cases. In case there is a person in the taxable territory (India) representing such overseas supplier in the taxable territory for any purpose, such person (representative in India) shall get registered and pay integrated tax on behalf of the supplier. In case the overseas supplier does not have a physical presence or does nothave a representative for any purpose in the taxable territory, he may appoint a person inthe taxable territory for the purpose of paying integrated tax and such person shall be liablefor payment of such tax.

Who is a Non-Taxable Online Recipient? Non-Taxable Online Recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. The expression governmental authority means an authority or a board or any other body: (i) Set up by an Act of Parliament or a State Legislature or (ii) established by any Government with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution. Examples of what could be or could not be OIDAR services The inclusive part of the definition of OIDAR services are only indicative and not exhaustive.to determine if a particular service is an OIDAR service, the following test can be applied: manually emailed by provider automatically emailed by provider s system Whether Provision of service mediated by over the internet or an electronic network Whether it is Automated and impossible to ensure in the absence of OIDAR automatically downloaded from site Stock photographs available for automatic download Online course consisting of pre-recorded videos and downloadable PDFs Online course consisting of pre-recorded videos and downloadable PDFs plus support from a live tutor Individually commissioned content sent in digital form e.g., photographs, reports, medical results Whether Provision of service mediated by over the internet or an electronic network Whether it is Automated and impossible to ensure in the absence of OIDAR

Indicative List of OIDAR s 1. Website supply, web-hosting, distance maintenance of programmes and equipment (a) Website hosting and webpage hosting (b) Automated, online and distance maintenance of programmes (c) Remote systems administration (d) Online data warehousing where specific data is stored and retrieved electronically (e) Online supply of on-demand disc space 2. Supply of software and updating thereof (a) Accessing or downloading software (including procurement/accountancy programmes and anti-virus software) plus updates (b) Software to block banner adverts, otherwise known as Banner blockers (c) Download drivers, such as software that interfaces computers with peripheral equipment (such as printers) (d) Online automated installation of filters on websites (e) Online automated installation of firewalls 3. Supply of images, text and and making available of databases (a) Accessing or downloading desktop themes (b) Accessing or downloading photographic or pictorial images or screensavers (c) The digitised content of books and other electronic publications (d) Subscription to online newspapers and journals (e) Weblogs and website statistics (f) Online news, traffic and weather reports (g) Online generated automatically by software from specific data input by the customer, such as legal and financial data, (in particular, data such as continually updated stock market data, in real time) (h) The provision of advertising space including banner ads on a website/web page (i) Use of search engines and Internet directories 4. Supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events (a) Accessing or downloading of music on to computers and mobile phones (b) Accessing or downloading of jingles, excerpts, ringtones, or other sounds (c) Accessing or downloading of films (d) Downloading of games on to computers and mobile phones (e) Accessing automated online games which are dependent on the Internet, or other similar electronic networks, where players are geographically remote from one another

5. Supply of distance teaching (a) Automated distance teaching dependent on the Internet or similar electronic network to function and the supply of which requires limited or no human intervention. These include virtual classrooms, except where the Internet or similar electronic network is used as a tool simply for communication between the teacher and student (b) Workbooks completed by pupils online and marked automatically, without human intervention The place of supply of online and database access or retrieval services shall be the location of the recipient of services.