Domain registration is liable under service tax
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.