Frequently Asked Questions

Who is the person responsible for payment of tax for ‘online information and database access or retrieval services’?

A person located in non-taxable territory and supplying ‘online information and database access or retrieval services’ to non-taxable online recipient shall be
the person liable for paying Integrated Tax. If such supply is arranged or facilitated through an intermediary located in non-taxable territory, then such intermediary will be the person liable for paying Integrated Tax. However, if the intermediary is working only as a conduit between actual service provider and actual service recipient, the service provider will continue to be liable to pay tax.

For example: A USA based company ABC provides online video services to Indians. To watch the video an individual has to pay some money electronically ABC has neither any office /representative nor any equipment in India.  In this case, company ABC has to discharge the Integrated Tax liability.

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