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

Olivier MJ Crepin-Leblond ocl at gih.com
Sat Nov 24 11:54:23 UTC 2012


Dear Siva,

I think you'll find that Tax matters are a matter of Country sovereignty
therefore ICANN stays well clear of tax matters in a specific country.
If a country wishes to levy taxes on an industry they are free to do so.
Kind regards,

Olivier

On 21/11/2012 08:25, Sivasubramanian M wrote:
> 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
>

-- 
Olivier MJ Crépin-Leblond, PhD
http://www.gih.com/ocl.html





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