Taxation of Domain Registration Services in Godaddy.Com LLC Case: Tax Implications for Digital Services

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r of Income Tax, DCIT Circle 1 (3) (1)', adjudicated by the Delhi High Court, revolves around the characterization of income received from domain name registration services as 'royalty' under Section 9(1)(vi) of the Income Tax Act, 1961. This matter is significant in determining the tax implications for foreign companies providing digital services in India. Factual Background Godaddy .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or domain registration services qualify as 'royalty' under Section 9(1)(vi) of the Income Tax Act, 1961. * Applicability of Income Tax Provisions to Foreign Entities: The case also involves examining the tax implications for foreign entities providing digital services in India and the extent of their tax liability under Indian law. Analysis of Legal Framework and Arguments * Argumen .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uld be considered as royalty. * The Tribunal's judgment equating domain names with trademarks is correct, bringing the income under the ambit of royalty as per Section 9(1)(vi) of the Act. * Court's Observation and Decision: * The Court noted the distinction between domain names and trademarks, emphasizing the lack of proprietary rights of the Appellant in the domain names register .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X