Does web hosting business come under service tax in india ?

any one have a clear idea or knowledge if a web hosting business come under service tax in india ? what about providing / reselling domain names ?

Does web hosting business come under service tax in india ?

No.

Information Technology Services like designing, developing or maintaining of computer software, or computerized data processing or system networking, or any other service primarily in relation to operation of computer systems are not liable to service tax.

There is specific clarification in Explaination under the category of %26quot;Business Auxilliary Services%26quot; in Section 65 (19) (iv) of the Finance Act. Web hosting / providing of domain name are services related to information technology services and therefore not covered under Service Tax.

Does web hosting business come under service tax in india ?

Web hosting is not subject to service tax. For list of notified services which are covered under service tax refer to the link below:

http://www.allindiantaxes.com/service-ta...

Apropos providing/reselling domain names the liability to pay service tax will depend on nature of agreement/contract and your status and this may or may not fall under notified taxable service of %26quot;Business Auxiliary Service%26quot; depending on facts of the case which is applicable on promoting business or as commission agent.However, gross billing upto Rs.4 Lakh is exempt from service tax.

Other Replys:Recently Indian Government has made a major changes in structure of taxatation and now a number of services which were otherwise spared come under service tax.

Internet based work including hosting service providers based in India will have to pay service tax which is over 12% with additional Cess tax too.It is ok to pay for these for customers in India who will ultimately pay for this but what about the customers from other countries. They won%26#039;t be paying this tax to Indian Government.