Liability to Deduct TDS
Court : Tribunal
Brief : : Held that the foreign co. earned money by providing copyrighted information on subscriptttion basis. The subscriptttion was in the nature of access fee to database maintained outside India. Thus such receipts could not be treated as income accrued in India. Hence no TDS was reuired to be deducted .
Citation : Wipro Ltd. Vs. ITO
Judgment :
Liability to Deduct TDS
Wipro Ltd. Vs. ITO 12/30/2004
(2005) 278 ITR (AT) 57 (Bangalore)
Case Fact: Whether assesse was liable to deduct TDS for payments made to foreign co. for providing access to its database on subscriptttion basis.
Decision: Held that the foreign co. earned money by providing copyrighted information on subscriptttion basis. The subscriptttion was in the nature of access fee to database maintained outside India. Thus such receipts could not be treated as income accrued in India. Hence no TDS was reuired to be deducted .
I got the above referred information from a article submitted in 2007 to this valued WEB. I would like to give all credit to the senior who had submitted.
Now the question arise - In some cases, several websites outside India charging Crdeit cards issued in India to use their services for various business purpose. Assessee can't able to deduct TDS on payments. Can we follow the order issued by Hob'ble Court ?
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