India 15% Service Tax on foreign e-services

30 November 2016

From 1 December 2016 the Indian Government will impose a service tax at 15% on the sales of e-services to consumers in the country.

At present, non-resident businesses providing digital services in India do not have to charge service tax on their sales.  However, in an effort to remove the unfair advantage given to non-resident companies over Indian resident providers, the Indian Government has now confirmed that the service tax at 15% will be applied on these types of transactions.

The Indian government also confirmed that there will be an annual registration threshold of Rs 10 Lakh (approximately £11,700) and businesses affected will be required to register with the Indian authorities immediately via a local tax representative.

This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

LATEST NEWS

Separate EORI number for Northern Ireland required

HMRC have recently confirmed that businesses who import and export goods from Northern Ireland (NI) will need a special Economic Operator Identification Number...

SEE MORE
LATEST NEWS

UK Intrastat still required after Brexit

The UK tax authorities have confirmed that English, Welsh and Scottish businesses importing goods into the UK from the EU will still be required to prepare and...

SEE MORE
LATEST NEWS

Ireland to introduce postponed accounting for import...

The Irish government have confirmed that a postponed accounting facility will be implemented for import VAT post-Brexit.  This new mechanism will allow all...

SEE MORE

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.