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9.9 Further, levy of taxes outside India is also a fact which
supports the contention of the Noticee that the services were
received and consumed outside India. The levy of local taxes
is an important criteria to determine the consumption of the
services. Since, local taxes have been levied, it is imperative
that the services have been received and consumed outside
India. Had the services being imported into India, the same
should not have been subjected to local taxes.
9.10 It has further been contended that in order to provide IT
services outside India they also procured data an information
about the foreign market which provided relevant input to
supply the service in more effective manner. In this
connection they have incurred web hosting and proxy charges
in foreign currency on account of accessing web servers and
data centres located outside India. Such hosting and proxy
services allows access to data base servers and information in
electronic form through electronic network. The web host
server provides connectivity to data centres and space use for
its subscribers over computer network, for example cloud
hosting.