Indian Service Tax is an indirect levy imposed under Chapter V of the Finance Act, 1994 as amended. The tax is applicable to services specified in the chapter called "taxable services".
Education Cess on taxable services is imposed under section 91 read with section 95 of the Finance (No.2) Act, 2004. Education Cess is imposed on the Service Tax levied and collected. Therefore, fully exempted taxable services would not be subjected to Education Cess.
Service Tax and Education Cess are imposed on the services rendered by eBay under the Business Auxiliary Services classification. Service Tax and Education Cess apply to persons who reside, have a permanent address, or are established in India. Please ensure the address that you provided to eBay is correct, especially your country designation.
The Service Tax is imposed on your eBay fees and not on the selling price of the item. Charges for Service Tax and Education Cess will be levied on the final eBay invoice amount and are included in your Current Balance displayed on the site.
Starting February 24, 2009 the Indian service tax rate has changed from 12% to 10%. For all eBay fees the service tax has been computed at the new rate of 10% for all invoices generated on or after February 24, 2009. For PaisaPay fees, the new tax rates have been effective from March 2, 2009. Sellers will receive credit for the excess tax charged from February 24, 2009 to March 2, 2009 in your account by March 10, 2009.
To understand this, let's consider an example where a camera is sold for Rs 3,000.00. Assume this item attracts a 5% eBay transaction fee and hence the transaction fees amount to Rs 150.00. Service Tax of 10% on Rs 150 will be charged. Therefore the Service Tax amount is Rs 15.00. In addition 3% Cess (Edu: 2% + Sec & High Edu: 1%) will be levied on the Service Tax amounting to Rs 0.45 of Education Cess. Hence the total fees payable for this transaction will be Rs 165.45 (i.e., Rs 150.00 transaction fee plus Rs 15.00 Service Tax and Rs 0.45 Education Cess).
Similarly, all Feature Fees will also attract Service Tax. For example, if a Gallery Featured Fee is Rs. 90.00 with Service Tax and Education Cess the total charges will be Rs 99.27.
Value Added Tax
The VAT rate you will be charged depends on the EU country where you usually reside, have a permanent address, or are established. Please ensure that your registration details are up to date, especially your country designation.
Site Item is Listed On |
Value Added Tax |
European countries with VAT |
Stated fees include EU country-specific VAT, which will be removed when not applicable. Adjusted fees are subject to 10% India Service Tax and 3% Cess (Edu: 2% + Sec & High Edu: 1%) thereon, where applicable.
The current VAT rates in the European Union are as follows:
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India, United States, or any non-EU country |
No Value Added Tax. Stated fees are subject to a 10% India Service Tax and 3% Cess (Edu: 2% + Sec & High Edu: 1%) thereon |
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