Withholding tax on payment to linkedin (an nr job portal)
This query is : Resolved
08 March 2017
Hi,
LinkedIn (LN), a non resident job portal is providing three services.
Job slot: where your job is advertised over LN network so that interested and suitable candidates, being found out by automated LN analytics tool, may see the job post and apply for the job.
Career pages: Where the employer can create a webpage on LN website and post jobs, employee testimonials and videos etc. on that page and build employer brand.
Recruiter: where Employer is given access to huge database of professionals registered on LN and can filter out suitable candidates out of those using filters provided by LN.
My query is whether payment made to LN for above three services will attract Withholding tax, if yes at what rate?
LN is a Singapore based company and having no PE in India. Form 10F, No PE and TRC has been received from LN.
Please also clarify under which category above services will get classified i.e. Business, Fee for technical services or Royalty.
LinkedIn (LN), a non resident job portal is providing three services.
Job slot: where your job is advertised over LN network so that interested and suitable candidates, being found out by automated LN analytics tool, may see the job post and apply for the job.
Career pages: Where the employer can create a webpage on LN website and post jobs, employee testimonials and videos etc. on that page and build employer brand.
Recruiter: where Employer is given access to huge database of professionals registered on LN and can filter out suitable candidates out of those using filters provided by LN.
My query is whether payment made to LN for above three services will attract Withholding tax, if yes at what rate?
LN is a Singapore based company and having no PE in India. Form 10F, No PE and TRC has been received from LN.
Please also clarify under which category above services will get classified i.e. Business, Fee for technical services or Royalty.
08 March 2017
As LN is a non resident no PE in India, withholding tax not applicable. It will not fall under Royalty or fees for technical services.
08 March 2017
As LN is a non resident no PE in India, withholding tax not applicable. It will not fall under Royalty or fees for technical services.
16 March 2017
Thank you sir, But client's tax consultant is insisting on its being royalty (subscription to candidates profiles/database). Please provide me some strong explanation/ case law in support of its being business income. Thanks!
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