ITAT Rules Domain Registration and web Hosting not Royalty Income

The ITAT (Income Tax Appellate Tribunal) has ruled that domain registration and web hosting are "not royalty income." This significant decision clarifies the tax treatment of payments made for these essential internet services. The tribunal determined that payments for domain name registration and web hosting services are for the use of standard infrastructure and services, not for the transfer of any intellectual property rights or secrets that would qualify as "royalty." This ruling provides clarity and relief to businesses and service providers in the digital economy regarding TDS (Tax Deducted at Source) obligations.