Based on the OECD recommendations, India has imposed Goods and Services Tax (GST) on digital services. The concept is similar to electronically supplied services (ESS) taxed under the European VAT regime. Under the GST law in India, any foreign company making B2C supplies of services which are delivered over the internet and are essentially automated, involving minimal human intervention, is required to pay tax in India. Such foreign service providers are required to register in India, despite not having any presence in the country, and pay tax. If there is involvement of an intermediary platform, this liability attaches on such platform.
The tax administration in India is actively pursuing overseas service providers/intermediary platforms to register in India and pay tax on digital services.
We, Lakshmikumaran and Sridharan Attorneys, along with Baker Mckenzie, will be hosting a webinar to sensitize the industry about the kind of services and the circumstances under which they are covered under the tax net and situations where they are not taxable. The discussion would also cover the compliance methodology if the services are taxable and how to deal with the tax administration in this regard.
Speaker:
Mr. V Lakshmikumaran, Managing Partner, L&S
Mr. Jan L. Snel, Partner, Baker Mckenzie