[LIS-Forum] Service Tax of 12.36% on Online information and databases

Mailing List Admin mailman at ncsi.iisc.ernet.in
Fri Oct 19 18:47:14 IST 2012


---------- Forwarded message ----------
Date: Thu, 18 Oct 2012 18:36:03 +0530
From: atanu <atanu at computer.org>

This approach may need to be examined by the experts (such as taxation
and financial management experts). However, on examination of broad
parameters of service tax, lobbying with competent authorities may not
be the most effective method. Service tax is defined as " the
provision of services provided by service providers within India or
services imported by Indian from outside India". By this definition,
online database is a service.

Online database is not confined to database services in information
industry. Therefore, blanket exemption of service tax may lead to
exclusion of all industries including financial services industry that
heavily use online databases. A common practice by the Government is
to offset service tax by increasing the funding. Other methods are
available as well.

Making something available for free or exemption of royalty, taxes,
fees and charge may not be the most effective way to promote access
and usage in all the cases. Open access proponents tend to miss the
point that somebody pays for the access. It is quite possible this
service tax will help in making journals open access.


On Thu, Oct 18, 2012 at 12:24 PM, G.K.MANJUNATH <gkm at igidr.ac.in> wrote:
>
>
> As per the Govt circular, based on the Finance Act, 1994, all 'Online and off-line products' will now attract a service tax of 12.36%. Earlier these products / services were under negative list. Such a change in the policy will put pressure on the already constrained library budget.
>
> In view of this policy change, most of the vendors have postponed forwarding subscription to the publishers with an assumption the Govt may withdraw the change and it seems have also made representation in this regard.
>
> As we are gearing up for next year renewals, the matter will be of serious concerns to all of us. Please refer to section 75 of the below mentioned circular :
>
> http://www.servicetax.gov.in/st-act-upd-dec10.pdf
>
> It says "on-line information and database access or retrieval" means providing data or information, retrievable or otherwise, 5[to any person], in electronic form through a computer network"
>
> Our regular vendors have already indicated that, henceforth, libraries need to pay a service tax of 12.36% for renewing online journals and databases.
>
> I highly appreciate further debate on this issue. Can our associations and consortia coordinators, take up this matter immediately with the concerned Department/ Ministry to seek exemptions ?
>
> thanks,
>
>       Dr.G.K.Manjunath
>       Chief Librarian
>       Indira Gandhi Inst of Development Research
>       Film City Road
>       Santosh Nagar
>       Goregaon(East )
>       MUMBAI - 400 065
>       India
>                   Phone:        022-28416528
>                   email:         gkm at igidr.ac.in
>
>
>




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