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Showing contexts for: data access in M/S Urban Ladder Home Decor Solutions ... vs Assistant Commissioner Of Income Tax, ... on 17 August, 2021Matching Fragments
(C) Payments made to Amazon Web Services Inc., US 6.5 The assessee company has availed cloud computing services from Amazon Web Services Inc (AWS) for its online business needs.
Cloud computing is an arrangement in which the cloud provider hosts the shared computing resources such as hardware, software applications etc., and the cloud user accesses them for storage, data processing etc., via internet on a need basis. In view of Cloud computing technology, Enterprises need not make investment in IT infrastructure (hardware, storage space, application softwares, IT(IT)A No.615 to 620/Bang/2020 M/s. Urban Ladder Home Décor Solutions Pvt. Ltd., Bangalore other IT resources etc.) and they can use the required IT resources on payment of charges.
7. The Ld CIT(A) has examined the nature of payments made to these three non-residents as under:-
(A) In respect of payments made to Facebook, Ireland, the Ld CIT(A) has first analyzed the nature of payments. He has examined the agreement entered between the assessee and Facebook and observed as under:-
"13. This involves payments by the appellant for the use of, or the right to use of patented software processes. Under section 195 of the IT Act the income of non-resident which is taxable in India needs to be subjected to tax deduction. Therefore, the liability on the part of the assessee to deduct tax on payments made to Facebook Ireland is clearly defined in the ambit of Income tax Law. The nature of payment made is considered in the later part of the order along with other payments for software and data access.
29. This involves payments made by the appellant for the use of, or the right to use of patented software processes. Under section 195 of the IT Act the income of non-resident which is taxable in India needs to be subjected to tax deduction. Therefore, the liability on the part of the assessee to deduct tax on payments made to Mailchimp is clearly defined in the ambit of Income tax Law. The nature of payment made is considered in IT(IT)A No.615 to 620/Bang/2020 M/s. Urban Ladder Home Décor Solutions Pvt. Ltd., Bangalore the later part of the order along with other payments for software and data access. Also the advertisements payments are discussed as above in Facebook Ireland."
8. This involves payments by the appellant for the use or, or the right to use of patented software processes. Under section 195 of the IT Act the income of non-resident which is taxable in India needs to be subjected to tax deduction. Therefore, the liability on the part of the assessee to deduct tax on payments made to Amazon Web Hosting Services is clearly defined in the ambit of Income tax law. The nature of payment made is considered in the later part of the order along with other payments for software and data access."