Dear Everyone,
When a private limited company buys web hosting from a company in USA like for example
IT costs about US$399 per month equivalent to about say Rs 20000 per month
Now the mode of payment is only through credit card and only through online.
and NO company in USA hosting business is willing to allow for deduction in payment for TDS before paying them i.e
The price you see on the website https://billing.hivelocity.net/order/orderwiz.php?v=10&submit_domain=skip&aid=&c_code=&submit_package=package&type3_package=&type3_package=325&submit=next+%3E%3E US$399 per month is what is expected to be paid by everyone . There are no exceptions to it
My questions
1) Can the director use his OWN credit card (since no bank in India issues credit cards on company's name) to buy hosting for the company's sake since credit card is the ONLY MODE of payment for this kind of payments and no other payments are accepted by the hosting company and the private limted company CANNOT operate without good hosting from a USA company. SO if the director uses his own credit card what are the steps that need to be taken ?
2) TDS. All hosting companies in USA refuse to accept TDS deductions and so we have to pay the FULL amount to them. In this scenario..payment to foreign hosting companies is this payment covered under TDS if so ? what needs to be done ? This payment will happen on a monthly basis.
Shanthi
CAclubindia
