Applicability of TDS in case of payment of fees display of a newsletter available to all the users of the website.

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..... The issue is that should TDS be deducted for a payment to a foreigner having no PE (permnanent establishmnent in India) for the display of a newsletter on a website. The problem is that the of the newsletter hosting agency and its servers are outside India. However, the users of the newsletter are scattered all over the world. A question arises whether to deduct TDS on making payment to the N .....

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..... on-resident since some users of the newsletter are located in India. - Reply By DEV KUMAR KOTHARI - The Reply = The newsletter hosting agency and its servers are outside India. The task of web hosting is performed out side India. Therefore, the establishment to render service is out side India, services are actually rendered out side India (there is not even telephone link provided by web .....

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..... site to Indian party). Indian party get links through its ISP and not from website. Therefore, the website should not be liable to pay Income tax in India because the property is not located in India, and service is not provided in India though it is availed in India and all parts of world connected with internet. In my view it is a case where TDS is not required because there is no taxabl .....

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..... e income in India. - Applicability of TDS in case of payment of fees display of a newsletter available to all the users of the website. - Query Started By: - MAHESH MATHUR Dated:- 25-11-2010 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia .....

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..... .com - TMI - TaxTMI - TMITax .....

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