Downloading Movies And Shows From Foreign Sites Users have to pay 15% of Service Tax
Attention all internet users now the users who are downloading movies from foreign sites have to pay a service Tax of 15 % so next time you down load any eBook or music from any other foreign site then be ready to pay your taxes.
So These taxes will be started from beginning from December 1st the Tax will be added to your bill.
The Domestic supplier say that they have already been charged by the tax which have been downloaded by the Indian customers.If the Supplier is international then the taxes are not applied to the recipient is an individual,government, local body or government agency based in India.
The Central Board of Excise and Customs (CBEC) has made through four separate but interlinked notifications dated November 9—significantly amended the ‘Place of Provisions of Services Rules’ (PPSR) for ‘online information and database access or retrieval services’.
The amendment is the change in the definition of ‘place of provision of service’. At present, if service providers are outside India, the place of provision of service will be also outside India and no service tax are payable on such services supplied to individuals, government and government bodies in India and service taxes are applied to only B2B transactions expect from the Information transactions.
Hence their fore now the provisions of service will be location of service recipient and then all the downloads will be taxed. This will effect the overseas markets and companies which are providing the many services like the advertisements, web subscriptions, cloud hosting, music, e-books and gaming etc.and these kind of services were not taxed before which were provided to government or to an individual.
Then now as they came into taxation now then all overseas service provider will have to take the registrations in India as they have to pay the taxes now as they will collect the service tax from the end customer and now the services provided by the service providers will get costly to the customers or consumers.
According to the CBEC notification, this includes services such as internet advertising, providing cloud services, e-books, movies, music, software and other intangibles via telecommunication networks or internet; providing data or information in electronic format via a computer network, online supply of digital content, digital data storage and online gaming.
Charted Accountants say there will be practical difficulties in payment of such taxes if the overseas supplier has no presence in India