Withdrawal of exemption from Service Tax on Cross Border B2C OIDAR services provided online/ electronically from a non-taxable territory to consumers in taxable territory in India - Service Tax - TRADE NOTICE NO. 05/2016

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS, CENTRAL EXCISE SERVICE TAX LARGE TAXPAYAR UNIT: J.S.S. TOWERS: 100 FT. RING ROAD BANASHAKARI III STAGE: BENGAKURU 560 085 C. No. IV/16/35/2015-TECH LTU Dated: 24.11.2016 TRADE NOTICE NO. 05/2016 Sub: Withdrawal of exemption from Service Tax on Cross Border B2C OIDAR services provided online/ electronically from a non-taxable territory to consumers in taxable territory in India - Reg. Attention of the Trade Industry is invited to Central Board of Excise Customs, New Delhi's Circular No. 202/12/2016-Service Tax dated 09.11.2016 on the above subject arid Notification Nos. 46/2016-ST, 47 / 2016-ST, 48/2016- ST 49/2016-ST all dated 09.11.2016 and Notification No.50/2016-Service Tax dated 22.11.2016. 2. At present services received in taxable territory in India from outside the taxable territory by Government, a Local Authority, a Governmental Authority or an individual in relation to any purpose other than Commerce, Industry or any other business or Profession are exempted [Cross Border B2C (Business to Consumer) services provided in taxable territory]. On the other hand, services received by other persons in taxable territory from non-taxable territory (Cross Border B2B (Business to Business) services) are taxable under reverse charge i.e. service recipient in taxable territory pays tax. 3. The Board vide the above mentioned Circular and Notifications has withdrawn the exemption from Service Tax on Cross Border B2C Online Information Database Access or Retrieval services (OIDAR) provided online/ electronically from a non-taxable territory to consumers in taxable territory in India w.e.f 01.12.2016 and has authorized Large Taxpayer Unit, Bengaluru (LTU, Bengaluru) to be the administrative authority for the purpose of administration of such service providers. The above mentioned Circular and Notifications are available in www.cbec.gov.in Service Tax Circulars/ Instructions/ Notifications. 4. Service providers of Cross Border B2C OIDAR services providing services online/electronically from a non-taxable territory to consumers in taxable territory in India are requested to obtain Service Tax registration and pay Service Tax w.e.f 01.12.2016. For obtaining Service Tax registration they may access www.aces.gov.in. 5. For further information or in case of difficulties, the following Officers of LTU, Bengaluru may be contacted. 1. Shri. S. Venkatesh, Deputy Commissioner - Mob. no. 91 9674045577, Email Id - [email protected] / [email protected] 2 Shri. P. Muralidharan, Superintendent- Mob. no. 91 9481802791, Email Id- [email protected] 6. The contents of this Trade Notice may be brought to the notice of all the members of trade. (VINOD KUMAR) PRINCIPAL COMMISSIONER