Due to Technology and internet Advertising, Technology Cloud Services, Instant Download Services ( like E Book’s, Info graphics etc ) , supplies of digital content (movies, television shows, music etc) , online gaming services are becoming very popular, Services Provided from the Non -Taxable Territory to Taxable Territory are covered under the GST with the Name of Online Information Database Access and Retrieval Services (OIDAR) :
Meaning of Online Information Database Access and Retrieval Services:
Online information and database access or retrieval services” mean services whose delivery is mediated by information technology over the internet or an electronic network, nature of which renders their supply essentially automated, involving minimal human intervention & impossible to ensure in the absence of information technology and includes electronic services such as-
• Advertising on the internet;
• Providing cloud services;
• Provision of movie, software, e-books, music, and other intangibles through telecommunication networks or internet;
• Providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;
• Online supplies of digital content (movies, television shows, music and the like);
• Digital data storage; and
• Online gaming.
Taxability of OIDAR Services :
When Supplier is Located outside India and Recipient is Unregistered Person ( Services Provided from Non- Taxable Territory to Unregistered Person in the Taxable Territory i.e India )
In this case Place of Supply will be taxable territory i.e. India. (Location of Recipient of Services ) and IGST provisions will be applicable and the Supplier of Services is required to be Registered in India for the Payment of IGST.
To take the Registration in India , Application will be made in form REG-10.
Supplier will take registration at principal commissioner of central tax, Bengaluru west who has been designated for grant of Registration in such cases.
In this case Suppler is required to appoint Authorized Representative in India for Registration and Compliance.
When supplier is located outside India and recipient is business entity (i.e. Registered Person under GST)
In this case recipient is required pay tax on Reverse Charge basis and Supplier is not required to be registered
Fastlegal Provides Online Registratioon and Return Filing Services for Online Information Database Access and Retrieval Services (OIDAR ) Companies.
Please email us your Requirements at mail@fastlegal.in or call/whatsapp at 9782280098
