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Pricing & Billing - Tax Help India
  • Indian Service Tax

    As of December 1, 2016, DigitalOcean is required to charge Service Tax sales to non-business Indian customers. All Service Tax collected from customers in India will be paid to the Indian tax authority. Customers can access their Service Tax charges by visiting their Billing page and reviewing their monthly invoice.

    If you are a registered business established in India you may enter your Service Tax ID on your Billing page. The Service Tax ID field will appear once you have either added a credit card, or have added credit via Paypal to your account. Upon inputting your Service number, the Service Tax will not be applied to future monthly invoices. However, registered business may be required to manually account for this tax. If you do not see the Service Tax ID field on your billing page and you are an Indian resident, please open up a support ticket, and we will help you right away.

  • Why is Digital Ocean required to charge the Service Tax in India?

    Prior to December 1 , 2016, Service Tax was charged based on the location of the service provider. If the service provider was located outside India (as was the case with DigitalOcean), then no Service Tax was payable. The Government has made an amendment to this rule to charge Service Tax based on the location of the service receiver (the customer). As per the new rule, services will be taxable if the location of the service receiver is within the taxable territory, India.

    The following are some of the services which now come under the ambit of the Government notification: "(i) advertising on the internet; (ii) providing cloud services; (iii) provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet; (iv) providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network; (v) online supplies of digital content (movies, television shows, music, etc.); (vi) digital data storage; and (vii) online gaming;"

    For your reference, the detailed Government notification can be accessed here.

    All Service Tax collected by DigitalOcean from customers in India will be paid to the relevant tax authorities.