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The Central Board of Excise and Customs (CBEC) announced Service Tax policy revision on 9th November, 2016, declaring changes in the Place of Provisions of Services Rules (PPSR) for ‘online information and database access or retrieval services’. These changes will take effect from 1st December, 2016.
Relevant changes:
The scope of 'online information and database retrieval services' ('OIDR') has been considerably expanded. Online information and database access or retrieval services means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services such as:
- Advertising on the internet
- Providing cloud services
- Provision of e-books, movie, music, software and other intangibles via telecommunication Networks or internet
- Providing data or information, retrievable or otherwise, to any person, in electronic form Through a computer network
- Online supplies of digital content (movies, television shows, music, etc.)
- Digital data storage
- Online gaming
How will this impact you?
The above mentioned change will affect the way tax is handled on your Webyuga Network Solutions account and will impact every business that is based in India and transacts with Webyuga Network Solutions. Starting 1st December, 2016, we will collect Service Tax from you on our services.
- The reseller master agreement and all other agreements between you and Webyuga Network Solutions will thereon be executed with Directi Web Technology Pvt. Ltd., which is an Indian entity
- The service tax will be calculated as per prevailing service tax rates at the time of invoice generation, as defined by the Indian Government. The current service tax rate is 15% and will be charged on the gross total. This service tax will reflect on the transaction invoice.
- Your cost prices will be in INR and will follow those that are listed on india.webyuga.com/domain-reseller/pricing
- Once this move is complete, you will only be able to use the payment options listed on Payment Methods, as updated on 1st December, 2016
- As a result of the shift, there will be a scheduled downtime spanning a few hours, during which you will not be able to manage your orders and other processes. However, your domain name and web services will remain unaffected. We will communicate the details of the downtime to you soon
- If you are using any third party billing platform such as WHMCS, the billing process with your customers will not be impacted
Please feel free to write to us at clientrelations@webyuga.com if you have any questions regarding this email.
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