Non- Refundable registration fees for e-commerce forms part of value of taxable services livable to services tax.

Commissioner of services tax, Mumbai vs. diotech India ltd.  [2014] 36 STR 96 (tri.-mum.)

 

 

Facts:

The respondents were in the business of providing website and e-learning in electronic form and were also engaged in trading of consumer goods and branded goods and were registered under the category of online information and database access of Retrieval services the department alleged that the registration fees charged should form part of value of taxable services since the same was non- refundable. The fees were adjusted in the first purchase made by the online buyer and even in case of no purchase by the online user, these fees were not refundable. Since the charge were never declared or shown in returns extended period of limitation was invoked.

 

Held:

Since the registration fee was not refundable, it would be added to the gross value of taxable services tax. Since only on scrutiny of records by the department, the issue was noticed. It was a case of suppression of facts with intent to evade services tax and therefore. Extended period of limitation was justified.