TDS on payment of subscription charge to Job Portal
This query is : Open
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?
Your reply is deeply apprecated.
Regards
Sandeep
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?
Your reply is deeply apprecated.
Regards
Sandeep
12 October 2009
It would be more easy if the details of subscription were available.
Mostly TDS deductible u/s 194J for rendering professional service
Mostly TDS deductible u/s 194J for rendering professional service
12 October 2009
The subscription is for accessing the Naukri.com database for 1 year.
Hope this clairfies.
Regards
Hope this clairfies.
Regards
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
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
13 October 2009
Thanks for your response. Here are the details of the description on the bill from InfoEdge (Naukri.com)-
"Towards Cost of: ResDex Non-IT Annual: Qty 1". Service tax has been charged. No other description is given in the invoice.
Just to ask an extreme question - is there any case for not deducting TDS at all?
"Towards Cost of: ResDex Non-IT Annual: Qty 1". Service tax has been charged. No other description is given in the invoice.
Just to ask an extreme question - is there any case for not deducting TDS at all?
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