22 November 2016 India amends service tax rules for overseas service providers regarding online information and database access or retrievable services India's Ministry of Finance amended service tax rules related to online information and database access or retrieval services (OIDAR) on November 9. Key changes effective from December 1 include: (i) The definition of OIDAR services is expanded to include electronic services such as advertising on the internet, providing cloud services, online supply of digital content, digital data storage, online gaming, etc.; (ii) For business-to-business (B2B) transactions, the place of supply for OIDAR services will be the location of the service recipients. These services will become taxable under the reverse charge mechanism; (iii) For business-to-consumer (B2C) transactions, OIDAR services provided by an overseas service provider to Indian recipients will become taxable; and (iv) The liability to pay service tax for B2C transactions will be shifted to the overseas service provider. Document ID: 2016-1996 |
