Post several of your Asia-U . s . DTAA
S. 9: Income – Deemed to accrue otherwise arise for the India nostringsattached com (Royalties/charge to own tech services – Remittance) – percentage made to United states based business to the cost reimbursement on what parties got equivalent straight to have fun with rather than paid off amount to royalty, levy of interest you/s. 201(1A) is unjustified.
The fresh AO passed acquisition you/s. 201(1) and you may held that remittance from assessee to help you GTRC was nothing but royalty according to provisions out of s.9 (1)(vi) as well as in regards to article a dozen away from DTAA ranging from Asia and Us.
Thus, levy interesting you/s. 201(1A) wasn’t warranted.(r.w.s. 195 and you may 201 and you may post a dozen out-of DTAA ranging from Asia and you will USA)(AYrs : 2012-13 and you can 2013-14)
S. 9(1)(vi) : Money considered so you can accrue otherwise arise inside India – Royalty – Income regarding deals from application permit held regarding the nature off Royalty income – ITAT kept that income are obtained discounted off software/license rather than to have parting which have copyright of one’s software – thus this isn’t Royalty income because the defined less than Article 12 of one’s DTAA.
New AO found to assess company earnings acquired from the Assessee for sale regarding app/permit because the Royalty income you/s 9(1)(vi) of your Work r.w. (mais…)