15% additional service tax (for Indian buyers) on domains, Hosting services, other digital services

anantj · Dec 10, 2016

From December 1st, 2016, the Government of India has mandated an additional 15% service tax on a lot of digital products and services including Domain Names, Hosting Services, online disk space, video and music downloads and stream service etc.

This service tax introduces an additional burden on consumers, entrepreneurs, startups and end consumers alike.

Detailed circular for on this service tax: http://www.cbec.gov.in/htdocs-servicetax/st-circulars/st-circulars-2016/st-circ-202-2016

I've also started a Change.ORG petition urging the Finance Ministry and GoI to rollback this service tax. I request you to kindly sign it and support this opposition to an unjust and irrational tax:

Sign the petition

The London Tutors · Dec 13, 2016

Does this mean, if I am purchasing .in domain, it will be pushed up by 15%?

The London Tutors · Dec 13, 2016

If this is true, who would want to invest .in domains?
What happens if the government raise the tax?
Or they prevent foreign investers owining .in domains
Or they take full control over all .in domains
Anything can happen!!!!!!!!!!!!!!!!!!!!!

anantj · Dec 13, 2016

The London Tutors said:
Does this mean, if I am purchasing .in domain, it will be pushed up by 15%?

Only if you're billing address is in India. And if you purchase from a non-indian provide

chayan1111 · Jan 7, 2017

If i buy a premium domain name for 100000 and pay the renewal fees of 1000 . Here i will be charged service tax on 100000 or 1000 or 101000 ?

anantj · Jan 7, 2017

I believe on the total - 101000.
Since the taxes are not broken out, it is not so simple but can be calculated..

Ps. I'm assuming your figures are for INR. Hopefully you're not paying $1000 renewal for any one domain

chayan1111 · Jan 7, 2017

anantj said:
I believe on the total - 101000.
Since the taxes are not broken out, it is not so simple but can be calculated..

Ps. I'm assuming your figures are for INR. Hopefully you're not paying $1000 renewal for any one domain

yes ofcourse i am talking about INR figures .
I just added a premium domain name to my cart in GoDaddy and yes the tax amount was on the total amount . 15 % is a huge amount .

Can you please share the link to your petition ?

anantj · Jan 7, 2017

It's in the original post. Repasting it here: http://s.we.lc/2gv5en3

Thank you for signing the petition. Please do spread it and recommend to your friends and family for support!

krishmk · Feb 2, 2017

Service Tax on Domains has been a detrimental factor for most Indian Domain Resellers. we hardly make 80-100 Rs. profit in a .com domain by reselling - now companies like ResellerClub have started charging 15% tax on our cost price... If we add this addition to end users - they just compare this pricing to other online websites - and feel we are charging higher.

Domains - Wanted · Feb 2, 2017

The London Tutors said:
Does this mean, if I am purchasing .in domain, it will be pushed up by 15%?

anantj said:
Only if you're billing address is in India. And if you purchase from a non-indian provide

Interesting. So how exactly does India's tax office collect this tax when a resident of India buys/registers/renews a domain in a foreign shop (provider) like Namesilo, for example?

anantj · Feb 2, 2017

Domains - Wanted said:
Interesting. So how exactly does India's tax office collect this tax when a resident of India buys/registers/renews a domain in a foreign shop (provider) like Namesilo, for example?

As of right now, they do not. It is not clear on how this tax will be levied for those who do not have a presence in India

krishmk · Feb 3, 2017

This Service Tax is applicable only for Sellers in India.

15% additional service tax (for Indian buyers) on domains, Hosting services, other digital services

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