Skype may no longer be a free service in India

Google, Yahoo, MSN and Skype have been offering telephony-like facilities through their messenger software, may soon come into the service tax net, reports HT. All these services are currently offered free. Once required to pay taxes in India, their services may no longer be available for free.

And here is the argument from Yahoo and Skype on why they do not fall under the service tax net.

Yahoo did not provide voice-based services through its servers (network computers) in India, and therefore it did not fall within the ambit of service tax

A spokeswoman for eBay said Skype was not registered in India.

So what do you think?

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