Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 24 - HC - Income TaxTDS - The assessee is a manufacture of sugar had entered into an agreement dated 12.10.1983 for transfer of comprehensive technical information, know-how and supply of equipment with Tate, London - The said agreement envisaged payment of a sum of ₹ 1,55,000 in four (4) instalments towards supply of TALO processes - IAC gives two noc for the remittance of the money after deducting tax @ 20% - Tribunal came to the conclusion that the consideration paid by the assessee for transfer of drawings, designs, etc., outside India by Tate to the assessee did not constitute royalty “as contemplated under Article XIII of the DTAA Since the definition of royalty in DTAA has a limited scope, the remittances in issue cannot be construed as royalties, therefore, as is correctly concluded by the Tribunal, against the remittances in issue, tax at source could not have been deducted. We are also in agreement with the Tribunal that these payments could only constitute business profits of Tate - Appeal by the revenue is dismissed
|