29 May 2008
is TDS applicable on foreign payments for webhosting ?
my arguments or points
a. this service comes under royalty services. we are paying royalty for usage of their software and computer for a price.
b. the company is based in USA and does not have any Permanent Establishment in India. so NO income accrues in India.
c. Service is rendered abroad and payment is also made in foreign currency directly abroad.
d. most of my clients are located aboard.
e. there was a case where an Indian company WIPRO subscribing to an Online database of a foreign company which is maintained by the foreign company and the ruling was that NO TDS is payable on that payments. does the same apply to web hosting?