Online information-database access-retrieval services POPS Rules-2012 amendment in definition of telecommunication services
The service tax is payable only with respect to services rendered within taxable territories which in turn signifies that the determination of place of services are of paramount importance in deciding the taxability of a service. Accordingly, the Central Government had notified Place of Provision of Services (POPS) Rules, 2012 vide notification No. 28/2012
As per clause (q) of section 2 of Place of Provision of Services (POPS) Rules, 2012, the definition of telecommunication service is as under:
“telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting services.
CBEC has amended the above definition of telecommunication service by providing that “online information and database access or retrieval services” apart from broadcasting services, shall also not be covered under “telecommunication service”.
The notification is as under:
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.