Bigrock charging Service Tax on Domain Purchases and Renewals from Dec 1 2016

Bloody hell! This month onwards my domain registrar Bigrock charging me 16 percent service tax (Including Swachh Bharat Cess (SBC) at 0.50% and Krishi Kalyan Cess (KKC) at 0.50%) for domain renewals.Sudden increase in renewal prices in december. In November it was not there.What happened?All of a sudden, they became an Indian Company!!

These are the emails I got from them when I queried in two different support tickets.

Hi Maneesh,
Service tax 15 percent has been implied on all the products effective december 1st. 2016.

If you wish to purchase the domain service tax will be implied.

Kind Regards,
Karan Gupta
BigRock

Hi,

"The changes in the RBI Guidelines to include IT Products needed us to enforce the tax for our products too.

We've implemented the changes starting 1st December. Your Invoice will carry all relevant informaiton about the Product Cost & the Tax Amount too. "

Regards

Krutika.T
Associate - BigRock Sales

December 14,2016: Now godaddy also starts collecting 15 percent service taxes on their digital services.From December 1st, 2016, domain, hosting & cloud services who bypassed taxes through foreign entities also are paying the tax and passing it to customers. Real bad days for Small Web Design Agencies ahead.April to November, I was saved from the price hike due to tax because these guys were not billing us..They showed this business through their foreign arms, i Guess.But now RBI told strictly to distinguish between indian arms & foreign entities..

Sreekandakumar Pillai

Haven't they been charging srvice tax yet? rediff has been charging it. Namaste. I have been paying 15% service tax for the services such as domain name, dedicated servers, etc., because I buy from India-based companies.When emergency conditions occurs in hosting - such as failure of a RAID disk, the cost of calling ISD, coordinating with them, and waiting for their action, costs more than the service tax. - my experience.True about resellers in Kerala! I use rediff for domain for long time, works fine. Ctrls and ZNet for hosting, not resellers. They are established and works pretty well for me.

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