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TDS u/s 195

Querist : Anonymous (Querist) 23 April 2011 This query is : Resolved 

Our's is a limited company. We are making payments through credit card in foreing exchange for accessing certain sites in USA. The server is in USA.

It is monthly and /or yearly subscription charges paid for accessing the site.
If I go on a particular site, I will view the contents of the site broadly.But, if I want certain specific
information then I need to pay for it.

Are we liable to deduct TDS?
Vineet (Expert) 04 August 2011
You are only accessing their database maintained on a server in USA. There is no FTS or Royalty involved.

The income of non resident falls under Business and as there is no PE in India, no WHT liability arises.


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