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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.