DCIT v. KPMG Advisory Services (P.) Ltd. (2018) 168 ITD 34 (Mum) (Trib

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Payment of SAP charges made to Associated enterprise for use of licensed software was liable to tax as royalty in India and liable to deduct tax at source- DTAA-India -Germany [S. 195, 201(1), 201(IA), Art 12 ].

S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Professional charges paid by assessee to a non-resident company located in Bangladesh could not be brought to tax in India as royalty – DTAA- India – Bangladesh [ Art 13(2) ]

S. 9(1)(vi):Income deemed to accrue or arise in India – Royalty – Domain name is an intangible asset which is similar to trademark. Consequently, income from services rendered in connection with such domain name registration is assessable as “royalty”-DTAA- India -USA [ S. 115A, Art .12 ]

S. 9(1)(v) : Income deemed to accrue or arise in India – Interest -DTAA would apply only when recipient of interest was not having a permanent establishment in country where it had received interest- DTAA- India –France [ Art. 12 ]

S. 9(1)(i):Income deemed to accrue or arise in India – Business connection -Technical and equipment and services for events –DTAA- India – Belgium- Portugal [ S.9(1)(vii), 90, 195,Art, 7, 12 ]

S. 9(1)(i):Income deemed to accrue or arise in India – Business connection – Title in equipment imported transferred outside India — Delivery of equipment outside India and consideration for supply of plant and equipment paid in Euros to Bank outside India – Not liable to deduct tax at source .[S.195 ]

S. 9(1)(i):Income deemed to accrue or arise in India – Business connection – Shipping, Inland waterways transport – Matter remanded -DTAA- India – Singapore [ Art ,8,24 ]

S. 5 : Scope of total income – Non-resident — Employees of Indian company sent on assignments – Employees residents of those countries and liable to tax on their worldwide income in those countries for period of their assignment income did not accrue in India and not chargeable to tax in India — Indian Company is not liable to deduct tax on salaries paid in India — Once employees returned and became residents Indian Company can give credit for taxes deducted during deputation outside India – DTAA- India – Germany – USA [ S. 2(45) 4, 5(2) 9(1)(ii) 15, 90, 192 , Art.4(1) , 23,25 ]

S. 5 : Scope of total income – Notional interest – Charging of notional interest for delayed remittance of collection made by its agent was held to be not justified [ S. 145 ]

S. 5 : Scope of total income -Real income- Non-Banking financial company — Mercantile system of accounting —Interest on doubtful debts cannot be assessed as income [ S. 145 ]