Domain registration Godaddy

This query is : Resolved

Swathi (Querist)
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30 July 2021 Dear experts,
I want to buy a domain name for my blog from godaddy. However, since it is a foreign company is sec.195 applicable?
Is gst also applicable as it will to amount to import of services.
Since it is a new blog, the turnover as of now is zero.

Could you let me know about the gst and income tax applicability for domain registration?
Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2021 Now, the taxability of fees from domain name registration services has come under tax scanner. Recently, the Income-tax Appellate Tribunal, Delhi Bench (‘Tribunal’) has held that domain name registration fees received by Godaddy.com LLC[2] are taxable as royalty under Indian tax laws. A summary of the said Tribunal ruling is as under:

Deduct 10% TDS under section 195.
GST under RCM under import of service payable.

Swathi

Swathi (Querist)
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30 July 2021 Dear sir,
If I buy the domain from an Indian Company and pay 18% gst, I am not required to deduct tds and reverse charge mechanism also will not be applicable right?
Correct me if I am wrong.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 July 2021 Yes, you are right....

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