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The Tax Publishers Dy. DIT v. Savvis Communication Corporation [ITA No. 7340/Mum/2012, dt. 31-3-2016] : 2016 TaxPub(DT) 1879 (Mum-Trib) Web hosting services whether taxable in the hands of a non-resident *Facts:* Assessee non-resident in the business of web hosting and technology services had received monies from Indian companies for such services. The same was offered as income but was claimed exempt under Indo-US DTAA. Assessing Officer held it as taxable as royalty under clause 9(1)(vi) by giving a reading that web hosting companies provide server, internet connectivity, data centre services, so is consideration for use of equipment hence held it as royalty. Commissioner (Appeals) holding co-ordinate bench decisions held it as not taxable. Thus department went in appeal: Held in favour of the assessee that there was no technical service or use of equipment in the process of web hosting.

The Tax Publishers

Dy. DIT v. Savvis Communication Corporation [ITA No. 7340/Mum/2012, dt. 31-3-2016] : 2016 TaxPub(DT) 1879 (Mum-Trib)

Web hosting services whether taxable in the hands of a non-resident

Facts:

Assessee non-resident in the business of web hosting and technology services had received monies from Indian companies for such services. The same was offered as income but was claimed exempt under Indo-US DTAA. Assessing Officer held it as taxable as royalty under clause 9(1)(vi) by giving a reading that web hosting companies provide server, internet connectivity, data centre services, so is consideration for use of equipment hence held it as royalty. Commissioner (Appeals) holding co-ordinate bench decisions held it as not taxable. Thus department went in appeal:

Held in favour of the assessee that there was no technical service or use of equipment in the process of web hosting.