On 9 November 2016, India`s Central Board of Excise and Customs (CBEC) announced the new arrival of the service tax on cross-border business-to-consumer (B2C) services via cross-border e-commerce transaction.
The new digital tax regime came into effect on 1 December 2016, whilst foreign companies are yet to be effected by the service tax rules for digital content, their Indian counterparts have incurred a 15% charge.
As a result of the new digital tax regime a service tax of 15% will be chargeable to online information and databases access or retrieval provided in taxable jurisdiction.
The online information and database access or retrieval have been redefined to include e-commerce and accordingly these services include:
- Advertising on the internet;
- Cloud services;
- E-books, movies, music, software and other intangibles via telecommunication networks or the internet;
- Data or e-information;
- Digital data storage; and
- Online gaming.
In November 2016, PwC India conducted a webcast regarding India`s New Indirect Tax Levy on B2C Digital Supplies. The webcast provides a more detailed insight into the new digital tax services, specifically discussing the operation of the new digital tax service as well as its effects on the industry.
To access the webcast, please click on the following link to open the webcast: http://edge.media-server.com/m/p/nq8oyjd2
After completion and submission of the registration fields, the webcast will automatically open.