CA Final · Indirect Tax Laws · Electronic Commerce Transactions
Globex Streaming Ltd, located outside India, supplies online information and database access or retrieval services to Indian individuals who are unregistered. It also, from the same overseas location, offers online money gaming to a person in India. Which statement about registration under section 24 is correct?
Globex must register for both activities. Section 24(xi) covers online information and database access or retrieval services supplied from outside India to a non-registered person in India, and clause (xia) covers online money gaming supplied from outside India to a person in India. The threshold and physical presence do not matter.
- AGlobex is required to register for both: clause (xi) applies to online information and database access or retrieval services to a person in India other than a registered person, and clause (xia) applies to online money gaming from outside India to a person in IndiaCorrect
- BGlobex needs registration only for online money gaming, since clause (xi) applies only to registered recipients
- CGlobex needs registration only if its Indian turnover exceeds the section 22 threshold
- DGlobex is exempt because it has no physical presence in India
Explanation
Section 24(xi) covers every person supplying online information and database access or retrieval services from outside India to a person in India other than a registered person, and clause (xia) covers online money gaming from outside India to a person in India. Both apply notwithstanding section 22(1), so the threshold and the lack of physical presence are irrelevant. Option B reverses clause (xi), which applies to recipients other than registered persons.
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