Seeks to amend Place of Provision of Services Rules, 2012 so as to exclude ‘online information and database access or retrieval services’ from the definition of ‘telecommunication services’.
Central Government vide Notification No. 51/2016-Service Tax, Dated: November 30, 2016 has amended Place of Provision of Service Rules, 2012 to provide that, with effect from 1st December 2016, Online information and database access or retrieval services have been excluded from the definition of telecom service in addition to broadcasting services specified earlier.
Now the online information and database access or retrieval [OIDAR] services including electronic services in India, provided either by Indian service provider or by a foreign service provider would be taxable in India w.e.f 1st December 2016.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 51/2016-Service Tax
New Delhi, the 30th November, 2016
G.S.R.—(E).- In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules to further amend the Place of Provision of Services Rules, 2012, namely :-
1. (1) These rules may be called the Place of Provision of Services (Second Amendment) Rules, 2016.
(2) They shall come into force on the 1st day of December, 2016.
2. In the Place of Provision of Services Rules, 2012, in rule 2, in clause (q), after the words “include broadcasting”, the words “and online information and database access or retrieval” shall be inserted.
[F. No. 354/149/2016-TRU]
Under Secretary to the Government of India
Note:- The principal rules were published in the Gazette of India, Extraordinary, vide notification No. 28/2012 – Service Tax, dated the 20th June, 2012 vide number G.S.R. 470 (E), dated the 20th June, 2012 and last amended by notification No. 46/2016 – Service Tax, dated the 9th November, 2016 vide number G.S.R. 1055 (E), dated the 9th November, 2016.