Whether Domain registration fee received by GoDaddy is taxable as royalty

Last updated: 21 December 2022
Quick Summary
The Income Tax Appellate Tribunal (ITAT) has ruled that domain registration fees received by GoDaddy are taxable as royalty in India. The tribunal cited a Supreme Court judgment stating that domain names possess characteristics of trademarks and are valuable commercial rights. Therefore, services for domain registration are considered akin to using intangible property, making the fees royalty under Indian tax law.

Court :
ITAT

Brief :
The ITAT ruled in favour of revenue on basis of a judgment delivered by the Apex Court in the case of Satyam Infoway Ltd. v. Siffynet Solutions (P.) Ltd. AIR 2004 SC 3540.

Citation :
GODADDY.COM LLC (APPELLANT) V. ACIT (RESPONDENTS)

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