04 August 2015
Is a company liable to deduct the TDS on the payments to Foreign Companies for availing Web Hosting services?
In a similar case, it was upheld by the Mumbai Bench of Income-tax Appellate Tribunal that - Payments for website hosting cannot be treated as Royalty under the Income-tax Act or India-USA tax treaty hence, TDS deducation is not required:
Read the case details here: http://www.kpmg.com/IN/en/services/Tax/FlashNews/People-Interactive-Ltd.pdf
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