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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Lumina Streaming Inc., based in Singapore, supplies online information and database access or retrieval services to a customer in India who is an unregistered individual. It has no physical presence or representative in India. Which statement is correct?

Lumina must register compulsorily. Section 24(xi) requires registration of 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 the recipient here is unregistered.

  1. ALumina need not register because it is outside India
  2. BLumina must register under section 24(xi) because it supplies such services from outside India to a non-registered person in IndiaCorrect
  3. CLumina must register only if it is an e-commerce operator collecting tax at source
  4. DRegistration is needed only if the recipient is a registered person

Explanation

Section 24(xi) makes registration compulsory for every person supplying online information and database access or retrieval services from a place outside India to a person in India other than a registered person. The recipient here is unregistered, so the condition is met. Option D reverses the condition, since the clause excludes registered recipients.

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