The Directorate of Commercial Taxes, Govt. of West Bengal on October 04, 2024, issued a clarification on the place of supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
The following has been stated namely: -
• It clarifies that Data hosting service providers, who supply services directly to cloud computing providers without involving themselves in the end-user transactions, are not considered intermediaries under Section 2(13) of the IGST Act, and their services are not governed by Section 13(8)(b) for determining the place of supply.
• It clarifies that Data hosting services provided by a data hosting service provider to cloud computing service providers cannot be deemed to be in relation to goods "made available" by the recipients, so the place of supply is not determined under Section 13(3)(a) of the IGST Act.
Kindly refer to the attached document for detailed notification.
[Trade Circular No. – 25/2024]
