12 October 2009
I am an individual-proprietorship doing business of manpower recruitment. I have taken the subscription of Naukri.com (Infoedge India) for one year recently.
For FY 2008-09 I have also undergone tax audit under section 44AB (income above 10L). My question is -
1. Am I liable to deduct TDS on the payment to Naukri.com (InfoEdge). The amount of payment is about Rs. 85,000 (two installments of Rs. 60,000 & 25,000)?
2. If yes, under what section TDS has to be deducted for such services?
13 October 2009
I think by subscribing to Naukri , u get the following services . Database assess , a permanent login and a password is provided to you and help desk charges .Annual charges are levied every year.
I think these fall under "technical services " and would be TDS deductible u/s 194J @ 10%
This issue was considered by the Authority for Advance Rulings (AAR) in the case of Cargo Community Network (P.) Ltd. (2007; 158 Taxman 243). Its just that in this case the portal was hosted outside india ( in singapore)
The AAR held that these kinds of services are royalty & technical services
It would also depend on how infoedge raises the bill
CAclubindia
