Section 9: International Taxation / Royalty

The Delhi ITAT bench has laid down important law on tax ability of royalty embedded in goods sold in India has held that royalty earned by non-resident from another non-resident is not taxable in India u/s. 9(1)(vi)(c) even if payer embeds the know-how into products sold in India.

The Mumbai ITAT bench has held that services rendered by machines is not “fees for technical services” u/s 9(1)(vii)

The Andhra Pradesh High Court explaining entire Law on Lifting Corporate Veil to tax offshore transfers held that gains arising on sale of shares of foreign company by NR to NR not taxable in India under India-France DTAA even if the foreign co only held Indian assets.