Yes. All Website, FTP and incoming/outgoing e-mail traffic counts against your total bandwidth allocation which is resetted on 1st day of every month.
Over using of the limit results in automatic suspension of the site which again gets started on 1st of the next month.
Its a safeguard to prevent someone misusing your domain and our server resources. In an even of site getting suspended the client should open a support ticket as why the bandwidth was over used and we can tell the exact reason from the server logs... maybe an email address has been compormised due to weak password, or FTP password has been compromised where someone has loaded thier files and sharing it. or someone is stealing bandwidth from your website by directly linking to image or videos from your site in their webpages.
We use it more as a security feature and not as an annoying customer punishment feature.
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