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2012 (4) TMI 604 - AT - Income TaxWhether the consideration paid by the assessee to Set Satellite (Singapore) Pte. Ltd., for acquiring the non-exclusive rights to distribute SET and SETMAX Channels is in the nature of Royalty taxable @ 15% on gross basis under Article 12 of the India-Singapore Double Tax Avoidance Agreement (DTAA) or is business profits? - Held that:- t Broadcasting Reproduction Right is not covered under the definition of Royalty under section 9(1)(vi) of the Income tax Act as well as Article 12 of the Treaty.Accordingly, the payment is not in the nature of Royalty but in the nature of business income. No infirmity in the order of ld CIT(A) that consideration paid by the assessee to the non-resident company for acquiring nonexclusive right to distribute TV channels is not in the nature of Royalty but in the nature of business income and hence, it was not subject to withholding tax. Accordingly, we uphold his order by dismissing the grounds taken by the department.
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