Dear Siva, I think you'll find that Tax matters are a matter of Country sovereignty therefore ICANN stays well clear of tax matters in a specific country. If a country wishes to levy taxes on an industry they are free to do so. Kind regards, Olivier On 21/11/2012 08:25, Sivasubramanian M wrote:
Hello
I am raising this in the regional At-Large list first to ask if the following practice of levying taxes for Domain Name Registration is prevalent in other countries and if so, about any steps that ICANN is taking to ask Governments to avoid taxing Domain Name Registration.
Sivasubramanian M ISOC India Chennai ALS
FAQs : Is Service Tax Applicable on Domain Name Registration Services ? Q. Is Service Tax Applicable on Domain Name Registration Services ?
Ans. Yes, Domain Name Registration Charges have also become chargeable to service tax w.e.f. July 1, 2012 As per the Finance Bill, 2012, there have been vast changes in the taxation provisions relating to Service Tax. The regime has moved from earlier practice of levying the service tax on defined services. As per the new provisions, services of all types unless these have been specifically exempted in the negative list (Given Below the Complete List), shall become chargeable to service tax. AS A CONSEQUENCE, DOMAIN REGISTRATION CHARGES HAVE ALSO BECOME CHARGEABLE TO SERVICE TAX. The new provisions are applicable with effect from July 1, 2012 The rate of tax shall be 12.36% (12% towards Service tax and 3% (of tax) towards education and Secondary & Higher Education Cess). The tax shall be applicable on all the registrars irrespective of their location. The recent changes made in the Service Tax provisions have caused a complete change in service tax application mechanism. As a consequence, some notifications, circulars and clarifications are likely to be issued, which may have an impact on the applicability of the tax.
Notification with Complete Negative List of Services
Notification No. 25/2012-Service Tax New Delhi, the 20th June, 2012 G.S.R……(E).-
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of notification number 12/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:-
[negative list of items, except which attract Service Tax] 1. Services provided to the United Nations or a specified international organization;
2. Health care services by a clinical establishment, an authorised medical practitioner or para-medics;
3. Services by a veterinary clinic in relation to health care of animals or birds;
...etc.
This notification shall come into force on the 1st day of July, 2012. [F. No.334/1/2012 -TRU] (Rajkumar Digvijay) Under Secretary to the Government of India
Read more at: http://www.caclubindia.com/forum/faqs-is-service-tax-applicable-on-domain-na...
List of ICANN Accredited Registrars and the ccTLD accredited Registrars said to have started the practice of collecting Service Tax: ( 12.5% approx )
http://www.mitsu.in/ http://www.squarebrothers.com/domain-registration-india/ http://domainsearchindia.com/ http://www.net4.in/ http://www.qualispace.in/ http://speedhost.in/ http://www.hostingraja.in
-- Olivier MJ Crépin-Leblond, PhD http://www.gih.com/ocl.html