Sumit Agrawal
Established Member
- Impact
- 379
Hello All,
This is regarding 15% service tax that Godaddy is charging (in India) on domain purchase. By definition, service tax is charged only on service fees. So going by this, 15% service tax should be charged ONLY on domain renewal fee, domain registration fee or any other service provided by the registrar. This tax SHOULD NOT be calculated over product price (aftermarket domain price).
This miscalculation at Godaddy's end is in effect shooting up (by 15%) the domain purchase price quite drastically. So, if price of a domain is $2000, then effectively I'll (as an Indian buyer) have to pay $2300. More the price of domain, more will be extra amount that buyer will have to shell out.
Now, when I raised this issue with Godaddy team, they admitted it as an issue and after few follow-ups refunded the extra amount back to me. However, this where comes another issue.
In case of partial refund (only the extra service tax was to be refunded), Godaddy refunds the money in user's In-store credit account (instead of bank account). This means, you can use the refunded money only for Godaddy purchases and nothing else. Now, this is really irritating!
First of all, Godaddy is charging the service tax on domain price (due to problems in their system) and when after few follow-ups extra money is refunded, as a buyer I am forced to buy Godaddy's services/products from that refunded amount. Even if I want to use my money for any other purpose, I can't use it except for Godaddy purchases.
@Joe Styler can you please throw light on when should I expect this service tax issue getting resolved for Indian domain buyers. Because before that I will not prefer purchasing any aftermarket domain from Godaddy.
This is regarding 15% service tax that Godaddy is charging (in India) on domain purchase. By definition, service tax is charged only on service fees. So going by this, 15% service tax should be charged ONLY on domain renewal fee, domain registration fee or any other service provided by the registrar. This tax SHOULD NOT be calculated over product price (aftermarket domain price).
This miscalculation at Godaddy's end is in effect shooting up (by 15%) the domain purchase price quite drastically. So, if price of a domain is $2000, then effectively I'll (as an Indian buyer) have to pay $2300. More the price of domain, more will be extra amount that buyer will have to shell out.
Now, when I raised this issue with Godaddy team, they admitted it as an issue and after few follow-ups refunded the extra amount back to me. However, this where comes another issue.
In case of partial refund (only the extra service tax was to be refunded), Godaddy refunds the money in user's In-store credit account (instead of bank account). This means, you can use the refunded money only for Godaddy purchases and nothing else. Now, this is really irritating!
First of all, Godaddy is charging the service tax on domain price (due to problems in their system) and when after few follow-ups extra money is refunded, as a buyer I am forced to buy Godaddy's services/products from that refunded amount. Even if I want to use my money for any other purpose, I can't use it except for Godaddy purchases.
@Joe Styler can you please throw light on when should I expect this service tax issue getting resolved for Indian domain buyers. Because before that I will not prefer purchasing any aftermarket domain from Godaddy.