[APAC-Discuss] Service Tax for Domain Name Registration in India

[Sivasubramanian M]

Hello


I am raising this in the regional At-Large list first to ask if the
following practice of levying taxes for Domain Name Registration is
prevalent in other countries and if so, about any steps that ICANN is
taking to ask Governments to avoid taxing Domain Name Registration.

Sivasubramanian M
ISOC India Chennai ALS

FAQs : Is Service Tax Applicable on Domain Name Registration Services
? Q. Is Service Tax Applicable on Domain Name Registration Services ?

Ans. Yes, Domain Name Registration Charges have also become chargeable
to service tax w.e.f. July 1, 2012 As per the Finance Bill, 2012,
there have been vast changes in the taxation provisions relating to
Service Tax. The regime has moved from earlier practice of levying the
service tax on defined services. As per the new provisions, services
of all types unless these have been specifically exempted in the
negative list (Given Below the Complete List), shall become chargeable
to service tax. AS A CONSEQUENCE, DOMAIN REGISTRATION CHARGES HAVE
ALSO BECOME CHARGEABLE TO SERVICE TAX. The new provisions are
applicable with effect from July 1, 2012 The rate of tax shall be
12.36% (12% towards Service tax and 3% (of tax) towards education and
Secondary & Higher Education Cess). The tax shall be applicable on all
the registrars irrespective of their location. The recent changes made
in the Service Tax provisions have caused a complete change in service
tax application mechanism. As a consequence, some notifications,
circulars and clarifications are likely to be issued, which may have
an impact on the applicability of the tax.

Notification with Complete Negative List of Services

Notification No. 25/2012-Service Tax New Delhi, the 20th June, 2012
G.S.R……(E).-

In exercise of the powers conferred by sub-section (1) of section 93
of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the
said Act) and in supersession of notification number 12/2012- Service
Tax, dated the 17th March, 2012, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.
210 (E), dated the 17th March, 2012, the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby
exempts the following taxable services from the whole of the service
tax leviable thereon under section 66B of the said Act, namely:-

[negative list of items, except which attract Service Tax] 1. Services
provided to the United Nations or a specified international
organization;

2. Health care services by a clinical establishment, an authorised
medical practitioner or para-medics;

3. Services by a veterinary clinic in relation to health care of
animals or birds;

...etc.

This notification shall come into force on the 1st day of July, 2012.
[F. No.334/1/2012 -TRU] (Rajkumar Digvijay) Under Secretary to the
Government of India

Read more at: http://www.caclubindia.com/forum/faqs-is-service-tax-applicable-on-domain-name-registration-208752.asp#.UKx-wHYu5UG


List of ICANN Accredited Registrars and the ccTLD accredited
Registrars said to have started the practice of collecting Service
Tax: ( 12.5% approx )

http://www.mitsu.in/
http://www.squarebrothers.com/domain-registration-india/
http://domainsearchindia.com/
http://www.net4.in/
http://www.qualispace.in/
http://speedhost.in/
http://www.hostingraja.in