Sunday 13 November 2016

15% tax will be added to your bill on music, e-book downloads from overseas websites from 1st December, 2016

A service tax component of 15 percent will be levied on all downloads of e-books, music albums and buying cloud storage from overseas website.

ToI reports, the Central Board of Excise and Customs amended the service tax definitions and released notification in November in the place of PPSR for 'online information and database access or retrieval services.

As per latest information, from 1st December, 2016 onward the place of provision of service will be the location of th service recipient. 
In this regard, Snil Gabhawalla, CA and indirect tax expert said, 'All downloads in India will be subject to service tax. The amendments impact overseas companies providing various services like advertisements, web subscriptions, cloud hosting, music, e-books and gaming, to name a few'.

He also added, 'these services provided to governments and individuals were earlier not subject to service tax. “They now become taxable and the overseas service provider or any intermediary or authorized representative will need to register in India and pay the service tax'.