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2016 (9) TMI 215 - HC - Income TaxRoyalty payment - whether the payments made by the assessee to the foreign company, Shin Satellite Company of Thailand, are in the nature of the royalty within the meaning of Article 12(3) of the DTTA between India and Thailand? - Held that:- What is important is the permission to take the benefit of a copyright either in the film or in the television broadcasting. In case, the assessee had paid any amount in consideration of exploitation of any copyright of the foreign party, the payment in that case would have taken the character of royalty. But payment was made because the television programmes produced by the assessee were digitally broadcast through the satellite of the foreign party. The foreign party appears to be in the business of broadcasting television programmes through its satellite. The assessee who is a producer of the tele-programmes provides the contents in the form of tapes. The foreign party broadcasts the contents through its satellite and in lieu of such broadcasting, foreign party was paid various sums from time to time. We are, as such, unable to agree with Mr.Agarwal that the payment made by the assessee partakes the character of royalty. - Decided in favour of assessee
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