Log In

| Recover password


By the Pune bench decision in 2022] 99 ITR (Trib) 585 (ITAT[Pune])consideration payable  for use of the information and communications technology infrastructure set up by holding entity would be industrial royalty which will fall within the term “royalties” under the DTAA. In this case the assessee paid a recurring sum to holding company as reimbursement on account of information technology support services without deduction of tax at source alleging that no services were “made available” so as to bring the payment within the purview of “fees for technical services”. 


The bench explained distinction between Industrial royalty payments  and copyright royalty payments and further held that the DTAA specifically covers consideration for use of any industrial or commercial equipment hence the payment made by the assessee for use of the overall information communication technologies infrastructure set up by its Netherlands holding entity would fall within the term “royalties” under the Double Taxation Avoidance Agreement. 

Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.