Delhi High Court Directs Nil TDS for GoDaddy, Holds Domain Registration Fees Not Taxable Under India-US DTAA

The Delhi High Court has held that domain registration fees received by GoDaddy.com LLC are not taxable in India under the India-USA Double Taxation Avoidance Agreement (DTAA).

A Division Bench of Justices Dinesh Mehta and Vinod Kumar criticised the Income Tax Department for rejecting GoDaddy’s application for a nil withholding certificate under Section 197 of the Income Tax Act, despite binding precedent.

The Revenue had refused relief citing a proposed SLP before the Supreme Court.

Terming the reason unsustainable, the Court observed that authorities must act in accordance with law and treaty obligations, not revenue considerations, and directed issuance of a nil TDS certificate within 15 days.

[GoDaddy.com LLC v. Assistant/Deputy Commissioner Of Income Tax Circle 1(3)(1), International Taxation Delhi]