TDS ON MIDJOURNEY INC SOFTWARE SUBSCRIPTION CHARGES


This query is : Resolved 

Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) applies to subscription charges paid to Midjourney Inc. in the USA via credit card. Based on ITAT Delhi rulings, payments for the use of computer software through EULAs are generally not considered royalty and therefore not taxable in India. Consequently, TDS under Section 195 is typically not deductible, and Form 15CA is not required for such remittances.

22 January 2024 If i am paying subscription charges for use of software to MIDJOURNEY INC CALIFORNIA USA.
Payment done through Credit Card
Then TDS will be applicable or not on foriegn remittnce of the same.
and 15 CA form applicable for the same or not??

23 January 2024 ITAT Delhi held that amounts paid by resident Indian to nonresident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty and hence not taxable in India. Hence, TDS u/s. 195 not deductible.

02 February 2024 If i am paying subscription charges for use of software to MIDJOURNEY INC CALIFORNIA USA.
Payment done through Credit Card
Then TDS will be applicable or not on foriegn remittnce of the same.
and 15 CA form applicable for the same or not??

02 February 2024 TDS not applicable form 15CA required.


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