GST Yathra- 12- OIDAR Services

OIDAR Services

OIDAR service is one

·               whose delivery is mediated by information technology over the internet

·               whose supply is essentially automated involving minimal human intervention

Eg: Advertising on the internet, Website hosting and webpage hosting, Providing cloud services etc…

Non-taxable online recipient

Any person not registered

And receiving OIDAR services for purposes other than business or profession, located in taxable territory.

Section 14- Taxability of OIDAR Services

Sub-section 1:

If a person located in non-taxable territory supplies OIDAR service to a non-taxable online recipient, the former shall be liable to pay IGST.

However, if an intermediary located in a non-taxable territory facilitates to the provision of the service, the intermediary shall be deemed to be the supplier and liable to pay the tax

except when he satisfies the following conditions:

a.             The invoice by intermediary identifies the original supplier in non-taxable territory and service

b.            neither collects or processes payment  nor is responsible for the payment between the nontaxable online recipient and the supplier of such services;

c.             the intermediary doesn’t authorize delivery

d.            the terms and conditions for supply are not set by the intermediary, but by the original supplier

Sub-section 2:

The supplier or intermediary located in non-taxable territory shall take a single registration under the simplified registration scheme.

If supplier or intermediary appoints a representative in India representing him, such representative shall get registered.

If the supplier or intermediary neither takes registration, nor there is representative, he shall appoint a person for paying IGST.