TDS on Web Hosting Charges

This query is : Resolved

S.GOPALAKRISHNAN (Querist)
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27 January 2009
Pl. clarify whether TDS is to be deducted from WEB HOSTING CHARGES payable to Indian and Foreign companies.

Gopalakrishnan S
krishnan2310@gmal.com

Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 January 2009 server along with all the software required for hosting the website , shall come within the purview of royalty.Which means the payment for web hosting shall deem to accrue or arise in India. Which makes the payment taxable under I T Act even in case of Non Resident. Therefore, payment in that case is subject to TDS .