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Indian Service Tax

Internet Access Service

Effective date: 1/7/2003

Authority: Notification No. 7/2003-ST, dt. 20/6/2003 (For full text see under "Business Auxiliary Service").

Rate of Service Tax: 8% upto 9/9/2004. 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definition:  As per Section 65(57)"internet cafe"means a commercial establishment providing facility for accessing internet."

Taxable Service: Services rendered by an internet cafe to any person relating to access of internet.

Value of Taxable Service: Gross amount charged by an Internet Cafe for providing access of internet.

Person liable to pay: Internet cafe/cyber cafe.

Head of Account: Tax Collection - 00440241, Other Receipts - 00440242, Deduct Refunds - 00440243.