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

[MAHESH MATHUR]

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 Non-resident since some users of the newsletter are located in India.

AI Summary

TDS applicability for cross-border web hosting services: if hosting and servers are outside the jurisdiction, TDS not required.
Where web hosting and servers are located outside the jurisdiction and the non-resident has no Permanent Establishment in India, the service is rendered abroad and access by Indian users does not make the payment taxable in India; therefore TDS need not be deducted as there is no taxable income in India.