Web hosting charges are not in the nature of royalty: ITAT

EPRSS Prepaid Recharge Services India P. Ltd. Vs ITO (ITAT Pune)

Conclusion –

The assessee did not use or acquire any right to use any industrial, commercial or scientific equipment while using the technology services provided by Amazon and hence, the payment made by assessee cannot be categorized as royalty payment.

Facts –

AO observed that assessee has claimed web hosting charges, however, no TDS was deducted. AO contended that in view of subsequent amendment to section 9, payment towards web hosting charges are categorized under royalty. AO contended that the said amendment had retrospective effect.

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